Petro Rabigh greenlights engineering works for fuel oil upgrade project

Petro Rabigh’s board approved proceeding with engineering works for its low-value fuel oil upgrade project

Rabigh Refining and Petrochemical Co.’s (Petro Rabigh) board of directors approved on Oct. 14 proceeding with engineering works for its low-value fuel oil upgrade project.

The company said it is in the process of awarding the engineering contract to a specialized firm to carry out detailed technical studies and determine the most effective methods for project implementation.

Petro Rabigh added that it will announce any material developments once the engineering phase is completed and a final decision is made.

In a statement to Tadawul today, Oct. 15, the company said the study currently has no financial impact, adding that any impact will be determined later if the project is approved and implemented.

Petro Rabigh explained that the project aims to establish two integrated units for fuel oil upgrading and diesel treatment, in addition to supporting facilities, with a total processing capacity of around 64,000 barrels per day of fuel oil.

According to data compiled by Argaam, Petro Rabigh’s board approved in 2018 the launch of preliminary studies for the project to upgrade and improve low-value fuel oil by building two main plants and other secondary facilities to convert low-value fuel oil into high-value diesel and other globally compliant products.

In February 2019, Petro Rabigh signed a SAR 300 million contract with Jacobs Engineering Group to provide engineering design and project management services for the fuel oil upgrade project over a period of five years.