Aramco Signs Chemical Technology Agreement

Aramco Signs Chemical Technology Agreement

Saudi Aramco has signed an agreement with two US companies to use their technologies in order to turn crude oil to chemicals, which will help the kingdom boost its petrochemical business, Reuters reported.

The Joint Development Agreement (JDA) was signed with CB&I and Chevron Lummusa, which is a joint venture between Chevron USA Incorporation and CB&I, considered a leading process technology licensor, according to Trade Arabia.

Under the agreement, the three companies are set to pilot technologies in order to convert 70% to 80% of crude oil intake into chemicals, Aramco Chief Executive, Amin Nasser, said, adding that the process is aimed to be commercialized in two years.

“Our strategy is to use oil as a major petrochemicals feedstock in our future projects, leveraging one of the world’s largest and lowest-cost oil reserves,” he pointed out.

The pilot technology has been developed at Saudi Aramco’s Research & Development Center over the past few years, aiming to allow chemicals yield higher than previously achievable.

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Sarah Samir 3670 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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