Aramco and ExxonMobil have entered into a Venture Framework Agreement (VFA) with their joint venture, Saudi Aramco Mobil Refinery (SAMREF), to explore a major expansion and upgrade of the Samref refinery in Yanbu, Saudi Arabia, aiming to transform it into an integrated petrochemical complex.

According to a statement by Aramco, the project review will assess potential investments to enhance production of lower-emission premium distillates and high-performance chemical products.

The proposed expansion also includes a coordinated strategy to reduce the site’s operational emissions.

The partners will now initiate a preliminary front-end engineering and design phase to evaluate how the project could boost efficiency, improve Samref’s competitiveness, and meet growing domestic demand for high-quality petrochemicals.

Further progress on the project will be contingent on market conditions, regulatory approvals, and final investment decisions by Aramco and ExxonMobil.

Samref is a 50:50 joint venture (JV) between Aramco and Mobil Yanbu Refining Company, a subsidiary of ExxonMobil. The refinery currently processes over 400,000 barrels per day (b/d) of crude oil and produces a wide range of fuels and products, including propane, diesel, marine fuel oil, and sulphur.