Aramco, Conoco set Jan 31 Deadline for Yanbu Bids
KHOBAR, Saudi Arabia, - Saudi Aramco and U.S. company ConocoPhillips have asked contractors to submit bids for deals to build a joint venture refinery in the kingdom by Jan. 31, sources at contractors said on Tuesday.
The two companies stopped the bidding process for the 400,000 barrels per day Yanbu refinery in November, one of several projects Aramco halted as it looked to cut costs.
Cost estimates for Yanbu doubled last year to $12 billion, from $6 billion when the project was announced in 2006.
Last week, Aramco and joint venture partner Total awarded contracts worth $9.6 billion for a similar-sized plant at Jubail. They saved more than $2 billion by asking contractors to revise bids to factor in falling costs for raw materials and a softer contract market due to the global economic downturn.
Jubail, like Yanbu, had seen cost estimates rise to $12 billion at the peak of the commodities rally last year.
Aramco and Conoco prequalified contractors to bid for six main process packages and to attend a meeting on the bidding to be held in Bahrain on July 14-15, contractors said. Tender documents would probably be issued in July or August.
“We have a long bid preparation period, six months is a lot of time,” a source at one company interested in bidding told Reuters. “Usually Aramco gives a period of four months but they thought that bidders may request an extension.”
The six packages are for crude, coking and gasoline units, a hydrocracker, tank farm and another facility to handle solids, sources said.
A few more packages would also be tendered, and some smaller packages would be awarded to local firms, sources said. The Jubail refinery was broken down into 13 packages.
More bidders
More bidders have been invited to compete for Yanbu than Jubail, one source said, as Aramco and Conoco look for the most competitive prices. An average of 10 bidders would compete for each package, up from six or seven for Jubail deals, he said.
“The number of bidders increased compared to Jubail,” he said. “They need more competition to get the best price.”
The Yanbu refinery on the Red Sea coast was due to start operations in late 2014. Both it and Jubail would process heavy crude from Moneefa oilfield, Saudi Arabia’s largest-ever offshore oil project.
South Korea’s Samsung Engineering Co is invited to bid for three process packages that include a coker unit, a crude facility and a gasoline unit.
Japan’s Chiyoda Corp is interested in bidding for the coker unit, the crude facility and the hydrocraker.
Italian contracting giant Saipem will be bidding for the hydrocracker, the gasoline unit, the crude facility and the coker unit.
China’s Sinopec will be bidding for the coker unit, the crude facility and the gasoline unit. France’s Technip will be bidding for the coker unit, the crude facility, the gasoline unit and the hydrocracker. Spain’s Tecnicas Reunidas will be bidding for the coker unit and the gasoline unit. Japan’s JGC will bid for the gasoline unit, the coker unit and the hydrocraker.
Among the 13 bidders that have been prequalified for the tank farm package are CB&I, Sinopec International Petroleum Service Corp, Punj Lloyd, Hyundai Heavy Industries, SK Engineering and Construction and others.
Sources at contactors said bidders for the packages include companies listed below. =============================================================== COKER UNIT PACKAGE - Samsung Engineering Co (South Korea)
· Chiyoda Corp (Japan)
· Saipem (Italy)
· Sinopec (China)
· Technip (France)
· Tecnicas Reunidas
· JGC Corporation (Japan) CRUDE UNIT PACKAGE - Samsung Engineering Co
· Chiyoda Corp
· Saipem
· Sinopec
· Technip
· Daelim
· Hyundai GASOLINE UNIT PACKAGE - JGC Corp
· Samsung Engineering Co
· Saipem
· Sinopec
· Technip
· Tecnicas Reunidas
· Daelim HYDROCRACKER PACKAGE - Chiyoda Corp
· Technip
· JGC Corp
· Saipem
· CBI Lummus (US) and Petrofac (UK)
· Daelim Industrial Company
· GS Engineering and Construction
TANK FARM PACKAGE - CB&I
· Sinopec International Service Corp
(China)
· Punj Lloyd (India)
· Hyundai Heavy Industries (S.Korea)
· SK Engineering and Construction
· Daewoo Engineering and Construction
· Larsen & Toubro (India)
· Petrosteel (joint venture between
Rotary Engineering of Singapore
and Saudi Arabia Rafid Group) SOLIDS HANDLING PACKAGE - Daelim Industrial
- FLSmidth Koch (Germany)
· GS Engineering and Construction Corp
· Hyundai Engineering and Construction
· JGC
· Petrofac
· Saipem
· Techint (Argentina)
The two companies stopped the bidding process for the 400,000 barrels per day Yanbu refinery in November, one of several projects Aramco halted as it looked to cut costs.
Cost estimates for Yanbu doubled last year to $12 billion, from $6 billion when the project was announced in 2006.
Last week, Aramco and joint venture partner Total awarded contracts worth $9.6 billion for a similar-sized plant at Jubail. They saved more than $2 billion by asking contractors to revise bids to factor in falling costs for raw materials and a softer contract market due to the global economic downturn.
Jubail, like Yanbu, had seen cost estimates rise to $12 billion at the peak of the commodities rally last year.
Aramco and Conoco prequalified contractors to bid for six main process packages and to attend a meeting on the bidding to be held in Bahrain on July 14-15, contractors said. Tender documents would probably be issued in July or August.
“We have a long bid preparation period, six months is a lot of time,” a source at one company interested in bidding told Reuters. “Usually Aramco gives a period of four months but they thought that bidders may request an extension.”
The six packages are for crude, coking and gasoline units, a hydrocracker, tank farm and another facility to handle solids, sources said.
A few more packages would also be tendered, and some smaller packages would be awarded to local firms, sources said. The Jubail refinery was broken down into 13 packages.
More bidders
More bidders have been invited to compete for Yanbu than Jubail, one source said, as Aramco and Conoco look for the most competitive prices. An average of 10 bidders would compete for each package, up from six or seven for Jubail deals, he said.
“The number of bidders increased compared to Jubail,” he said. “They need more competition to get the best price.”
The Yanbu refinery on the Red Sea coast was due to start operations in late 2014. Both it and Jubail would process heavy crude from Moneefa oilfield, Saudi Arabia’s largest-ever offshore oil project.
South Korea’s Samsung Engineering Co is invited to bid for three process packages that include a coker unit, a crude facility and a gasoline unit.
Japan’s Chiyoda Corp is interested in bidding for the coker unit, the crude facility and the hydrocraker.
Italian contracting giant Saipem will be bidding for the hydrocracker, the gasoline unit, the crude facility and the coker unit.
China’s Sinopec will be bidding for the coker unit, the crude facility and the gasoline unit. France’s Technip will be bidding for the coker unit, the crude facility, the gasoline unit and the hydrocracker. Spain’s Tecnicas Reunidas will be bidding for the coker unit and the gasoline unit. Japan’s JGC will bid for the gasoline unit, the coker unit and the hydrocraker.
Among the 13 bidders that have been prequalified for the tank farm package are CB&I, Sinopec International Petroleum Service Corp, Punj Lloyd, Hyundai Heavy Industries, SK Engineering and Construction and others.
Sources at contactors said bidders for the packages include companies listed below. =============================================================== COKER UNIT PACKAGE - Samsung Engineering Co (South Korea)
· Chiyoda Corp (Japan)
· Saipem (Italy)
· Sinopec (China)
· Technip (France)
· Tecnicas Reunidas
· JGC Corporation (Japan) CRUDE UNIT PACKAGE - Samsung Engineering Co
· Chiyoda Corp
· Saipem
· Sinopec
· Technip
· Daelim
· Hyundai GASOLINE UNIT PACKAGE - JGC Corp
· Samsung Engineering Co
· Saipem
· Sinopec
· Technip
· Tecnicas Reunidas
· Daelim HYDROCRACKER PACKAGE - Chiyoda Corp
· Technip
· JGC Corp
· Saipem
· CBI Lummus (US) and Petrofac (UK)
· Daelim Industrial Company
· GS Engineering and Construction
TANK FARM PACKAGE - CB&I
· Sinopec International Service Corp
(China)
· Punj Lloyd (India)
· Hyundai Heavy Industries (S.Korea)
· SK Engineering and Construction
· Daewoo Engineering and Construction
· Larsen & Toubro (India)
· Petrosteel (joint venture between
Rotary Engineering of Singapore
and Saudi Arabia Rafid Group) SOLIDS HANDLING PACKAGE - Daelim Industrial
- FLSmidth Koch (Germany)
· GS Engineering and Construction Corp
· Hyundai Engineering and Construction
· JGC
· Petrofac
· Saipem
· Techint (Argentina)
quoted from: Khaleej Times
