Saudi Aramco and Saudi Basic Industries Corporation (SABIC) are conducting a feasibility study for a facility to convert crude oil directly into petrochemicals, Platts reports.

The direct conversion would eliminate the need to refine the crude and potentially reduce costs.

The companies could sign a memorandum of understanding (MoU) for the development of the facility by the end of 2017, according to Platts.   

The project, if carried out, will use super-light crude for the production of the petrochemicals, a source on the research team told Platts.

Exxon Mobile pioneered the technology. In 2014, it initiated a similar facility in Singapore, Platts reports.