Aramco And ExxonMobil Collaborate On Framework Agreement For Samref Refinery Upgrade And New Petrochemicals Complex

Aramco, ExxonMobil, and Samref have agreed to explore significant development projects for the Samref refinery in Yanbu. This initiative aims to transform it into a comprehensive petrochemicals complex. The companies will assess capital investments to enhance production quality, focusing on high-quality distillates and high-performance chemicals. They also plan to improve energy efficiency and reduce emissions through a unified emissions-reduction strategy.

According to Aramco Downstream President Mohammed Y. Al Qahtani, "This phase of the Samref project represents an advanced step in our long-term strategic collaboration with ExxonMobil. The project is designed to increase the conversion of crude oil and petroleum liquids into high-value chemicals, reinforcing our commitment to value creation in the Downstream sector and our liquids-to-chemicals strategy. It will also contribute to strengthening Samref’s position as a driver of growth for the petrochemicals sector in the Kingdom."

The companies are set to initiate the preliminary front-end engineering and design phase for this proposed project. Their goal is to optimize operational benefits, boost Samref's competitiveness, and satisfy the rising demand for premium petrochemical products within Saudi Arabia.

The planned expansion of the refinery and petrochemicals complex will depend on market conditions, regulatory approvals, and final investment decisions by Aramco and ExxonMobil. These factors will determine whether the project proceeds as envisioned.

ExxonMobil Senior Vice President Jack Williams expressed appreciation for their partnership with Aramco, stating, "We value our partnership with Aramco and our long history in the Kingdom of Saudi Arabia. We look forward to evaluating this project, which aligns with our strategy that focuses on investments enabling us to develop high-value products that meet society’s evolving energy needs and contribute to a lower-emission future."

Current Operations

Samref is a joint venture equally owned by Aramco and Mobil Yanbu Refining Company Inc., a wholly owned subsidiary of ExxonMobil. Currently, Samref can process over 400,000 barrels of crude oil daily. It produces various energy products such as propane, automotive diesel oil, marine heavy fuel oil, and sulphur.

This initiative underscores the commitment of both companies to adapt their operations towards more sustainable practices while meeting increasing demands for refined products in Saudi Arabia.

With inputs from SPA