Saudi Arabian Oil Co. and Dow Chemical Co. have appointed KBR Inc. to manage the construction of an estimated $22 billion refinery and petrochemicals complex at Ras Tanura in eastern Saudi Arabia, the companies said.
Under the contract, Houston, Texas-based KBR will provide project management services for the project, which will integrate Aramco’s existing refinery at Ras Tanura with a new petrochemicals complex, Saudi Aramco and Dow said in a statement.
The project, which will come on stream in 2012, is the largest of its kind to be developed in the Middle East. Industry estimates have valued the project’s cost at up to $22 billion.
Persian Gulf governments, flush with cash from three years’ of high oil prices, are investing in new crude oil refineries to meet rising demand and tighter specifications for products such as gasoline and diesel, notably in Europe and in the U.S.
"This mega-project will leverage our refining assets by adding value to our feedstock to produce a diversified petrochemical slate of specialty chemicals," said Salman Al Aradi, project director for the so-called Ras Tanura Integrated Project.

(Dow Jones Newswires)