Feb 09 - Saudi Oil Minister Outlines New Jazan Refinery Project

Source Press
Company Saudi Aramco 
Tags Refinery Project, Refining & Marketing Activities
Date February 27, 2009

(SPA News Agency) The Minister of Petroleum and Mineral Resources Ali bin Ibrahim Al-Nu'aymi said that within the framework of the keenness of the Custodian of the Two Holy Mosques King Abdallah Bin-Abd-al-Aziz Al Sa'ud on a balanced economic development in all regions of the Kingdom, the King directed the Ministry of Petroleum and Mineral Resources to study the establishment of a crude oil refinery in the region of Jazan during his inspection tour of developmental projects in the region in the month of Shawwal, 1427H.

In a statement to Saudi Press Agency (SPA), Al-Nu'aymi said that in implementation of the royal order, the Ministry has formed a group of specialists to study the project, noting that the study has found the economic attractiveness of the project and the location of the refinery has been set in Jazan Economic City to be as one of the pillars of the city.

The minister pointed that out of 15 companies from Saudi private sectors, eight companies have been qualified and received a Request For Proposal (RFP) for construction, operation and ownership of export refinery in Jazan, noting that six foreign companies have also received RFP which have been culminated by the royal approval of them and the contents of incentives that will be provided by the Government of the Custodian of the Two Holy Mosques to support the economic feasibility of the project.

The Minister pointed out that the incentives include ensuring the needs of the refinery of crude oil for the operation expected to begin in the first quarter of 2015 with a production capacity ranging from 250,000 to 400,000 barrels per day of Arabian heavy oil (or light or a combination of both); granting investors tax incentives, for example: a tax deduction up to 15 percent of the paid capital of the industrial project, tax deduction of 50 percent of the cost of the annual training of Saudis and tax deduction of 50 percent of annual wages paid to the Saudis as well as the Government ensuring the building of naval facilities for handling crude oil and liquid products, in addition to certain facilities.

He said that the companies are in the process of preparing their bids to be submitted to the Ministry on the set time, September 2, 2009, adding that the winning consortium will be announced in the last quarter of this year.

Refinery Projects: Jazan Refinery

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