Jacobs wins project management bid on Saudi lube oil refinery expansion

Jacobs Engineering Group on Tuesday was awarded a contract from Saudi Aramco Lubricating Oil Refining Co. (Luberef) to provide project management consulting (PMC) services for an expansion project at its lube oil refinery in Yanbu, Saudi Arabia.

Officials did not disclose the contract value, instead noting that the overall expansion project cost is estimated at approximately $1 billion.

Jacobs' office in Leiden, Netherlands, is managing the overall project in collaboration with offices in Al Khobar, Saudi Arabia and other locations.

"Jacobs is delighted to continue our partnership with Luberef by working on this significant project at the Yanbu refinery," said Jacobs vice president Bassim D. Shebaro. "After our successful FEED efforts, we welcome the opportunity to continue to support Luberef's production of higher-grade clean fuels."

Under the terms of the agreement, Jacobs is providing PMC services for both inside battery limits (ISBL) and outside battery limits (OSBL).

The ISBL services include a new lube oil unit, a new sulfur complex, a new hydrogen manufacturing unit, and an expansion of the propane de-asphalting unit. The OSBL services involve all utilities, tanks and infrastructure.

"This expansion project will add value to the Kingdom's economy including employment, and provide high-quality lubricants to the markets we serve," said Luberef CEO Hasan Jamaan Alzahrani.

"In addition, it is part of Luberef's overall strategy to provide high-quality base oil with different product slates of GR-I, GR-II, and GR-III to strengthen Luberef's position as a leading supplier. Luberef is looking forward to working with Jacobs to execute this major milestone of the expansion project."

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