Jacobs wins work for $1bn Luberef Saudi expansion

Jacobs to provide front-end engineering design services

The Luberef refinery at Yanbu, Saudi Arabia.
The Luberef refinery at Yanbu, Saudi Arabia.

Jacobs Engineering has been awarded a contract from Saudi Aramco Lubricating Oil Refining (Luberef) to provide front-end engineering design (FEED) services to support an expansion project at its lube oil refinery in Yanbu, Saudi Arabia.

Officials did not disclose the contract value. However, they noted that based on the outcome of the feasibility study, the overall expansion project cost was estimated at $1billion.

Under the agreement, Jacobs is providing FEED services for both inside battery limits (ISBL) and outside battery limits (OSBL).

The ISBL services involve a new lube oil unit, a new sulphur complex, and an expansion of the propane de-asphalting unit. The OSBL services involve all utilities and infrastructure.

Jacobs’ Netherlands office is managing the overall project, while the infrastructure and building services are being executed by its Al Khobar, Saudi Arabia office. Additionally, the Jacobs office in Mumbai, India is executing selected design elements.

The Yanbu Refinery expansion is intended to increase base oil production to meet future demands for high quality G-II and G-III base oils and increase the GR-I Bright stock to almost double current production, produce higher-value byproducts (naphtha, diesel, kerosene), and satisfy the Kingdom’s requirements for drilling fluid, which is currently imported.

“This expansion project will add value to the Kingdom's economy, including employment, and provide high-quality lubricants to the markets we serve,” said Luberef president and CEO Ali A. Al-Hazmi.

“Jacobs is extremely proud to partner with Luberef on this significant project at the Yanbu Refinery, which also expands our growing presence and capability in Saudi Arabia. We welcome the opportunity to support Luberef's production of higher-grade clean fuels,” said Jacobs Group VP Robert Matha.

Luberef is one of the world's leading suppliers of high-quality base oil. It is a joint venture between Saudi Aramco and Jadwa Industrial Investment.

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