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Saudi Aramco: Signing Kicks off Fujian Project

Source: www.gulfoilandgas.com 1/4/2005, Location: Middle East

DHAHRAN, January 04, 2005 -- Saudi Aramco affiliate Aramco Overseas Co. (AOC) and its joint-venture partners, ExxonMobil and Fujian Petrochemicals Ltd. (FPCL), recently signed the Project Management Contract (PMC) with a consortium of ABB Lummus and Sinopec Engineering Institute for the Fujian Integrated Project.

The project will expand the existing refinery in the Fujian Province of China from 80,000 barrels per day (bpd) to 240,000 bpd, with significant product upgrading capability, using Arabian crude oil as feedstock.

The project also will include a new 800,000-ton-per-year ethylene steam cracker, polyethylene and polypropylene units and a new 700,000-ton-per-year paraxylene unit.

The PMC contractor will have the overall responsibility for initially developing the front-end loading and engineering, procurement and construction packages. Later, the PMC will participate in managing the detailed design, procurement and construction of the multi-billion dollar Fujian Integrated Project.

Front-end engineering is set to be completed in 17 months, and the entire project is planned to be completed in the second half of 2008.

AOC has mobilized a project team to Beijing as part of the integrated Owners Project Management Team, established by the joint venture owners to supervise the execution of the project.

Execution of the mega-project will be managed through two departments: Process Plants and Support Services. The Process Plants Department is responsible for the core of the manufacturing facilities, including new refinery units, new petrochemical units and revamping of the existing refinery, as well as the utilities and offsite facilities.

AOC's Abdullah M. Mannaa is leading the Process Plant Department and represents the three owners, AOC, ExxonMobil and FPCL. The Support Services Department is responsible for cost, schedule and contracting, and is led by the Chinese partners.

AOC and ExxonMobil will each have a 25 percent share in the project. The remaining 50 percent share will be held by FPCL. FPCL is owned jointly by the Fujian Provincial Government and Sinopec, a Chinese oil company.

The project will be the first joint venture for Saudi Aramco in China. The world-class project will play a significant role in meeting rapidly growing demand for petroleum products and petrochemicals in China.

The PMC consortium has the advantage of ABB's experience in managing international engineering projects and SEI's local engineering and project management resources as a leading Chinese engineering company. ABB, as the international partner in the PMC consortium, was selected following a competitive bidding process and after thorough evaluation by the three partners.

The signing of the PMC contracts in December initiates the implementation of the front-end loading work, an important step in developing a major complex.

Front-end loading includes completing initial engineering and design, procurement and construction contractors, finalizing the project cost estimate and pre-ordering long-lead equipment.


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