Saudi mulls construction of petrochemical plant with planned Jizan oil refinery

19-Jan-10

Saudi Arabia is mulling to commission the construction of a petrochemical plant with the planned new Jizan oil refinery in the kingdom. The Jizan refinery, with capacity of 250,000-400,000 bpd of crude, to be built at an investment of US$10 bln will be the first Saudi oil refinery to be 100% privately-owned. Bids have been received to build, own and operate the refinery in a tender that expired on Nov. 7. The bidding process for the Jizan refinery project has been delayed several times, as the kingdom strives to attract foreign interest in the project. Very limited interest has been shown in the project as players question the profitability of the refinery that is located very far from Saudi oil and gas fields.