Saudi Arabia’s Saudi Aramco (Dhahran; www.saudiaramco.com) and Sabic (Riyadh; www.sabic.com) have signed an agreement to study the feasibility of an integrated crude oil-to-chemicals project in Saudi Arabia. If the study reaches a positive conclusion, the companies said they would develop a joint venture production complex, which would substantially increase the country’s production of oil-based chemicals and optimise value across the entire hydrocarbons chain. The crude oil-to-chemicals process will be derived from improved refining technology, and will involve innovative configurations with proven conversion technologies, the companies added in a joint statement.

Saudi Aramco president and CEO Amin Nasser said the project would involve transforming and recycling by-products, and would help diversify the country’s petrochemical feedstock mix. "This agreement will help spur a new era of industrial diversification, job creation and technology development in Saudi Arabia, particularly through downstream conversion of speciality chemicals by small- and medium sized enterprises," he added.

Sabic vice chairman and CEO Yousef Abdullah Al-Benyan said: “We are hopeful that our agreement to conduct a joint feasibility study on the development of an integrated crude oil-to-chemicals complex in Saudi Arabia will ultimately lead to a new era for the kingdom, driving strong economic growth, creating many new opportunities for aspiring young Saudis, and playing a significant role in the kingdom's economic transformation."