GCC Mega Projects: Yanbu Grassroot Refinery, Saudi Arabia

The Kingdom of Saudi Arabia is regarded as the most exciting energy projects market in the world¬ today. The country has huge untapped oil and gas reserves, is one of the world’s largest oil producers, and has the capacity to support future unmet global demand for energy.

The Kingdom has a strong commitment to developing its refining industry as it aims to become the refining hub of the Gulf Co-operation Council (GCC). This is demonstrated by the considerable investments and large-scale project developments planned by the country in this segment.

Current Contax estimates show that refining will be the largest GCC energy projects market for 2008-2010 in terms of capex, with Saudi Arabia forecast to award over half of the US$84 bn planned GCC refinery project investments over this time period.

The Yanbu Grassroot Refinery is one of Saudi Arabia’s flagship refining projects, and of critical importance to the GCC and global refining industries. The Refinery will increase refining capacity by processing heavy crude rather than light crude oils to help meet rising global demand for refined oils. The project is currently at the EPC Bid stage stage, with FEED completed in Q2 2008.

This Contax Project Study provides readers with an in-depth analysis of the project at the EPC Bid stage, using Contax’s proprietary data and industry insights. Forthcoming updates will track project development at the Execution and Operations & Maintenance stages.

With the project looking very likely to move ahead with the award of the EPC, this Study provides all interested parties with a clear picture of the project at its current stage and gives insights into project structure to allow users to make targetted investments in the project.

This report is an essential source of critical up-to-date information on the project. It will enable readers to identify and prioritise appropriate opportunities, understand requirements and plan resources, and develop business.

Key insights include:

• The scope of the project
• The current status of the project
• Key project timelines, including forecast award dates for the various packages
• Our assessment of the likelihood for the project being realised
• Any potential challenges for the project to be realised
• The contracting strategy being adopted
• Key contractors and technology providers involved or likely to be involved
• An overview of the decision-making structure and key personnel
• The strategic importance of the project
• The market overview of Saudi Arabia in the context of the GCC
• The global production of refined products
• An overview of key technical aspects of the project