Aramco to terminate SK E&C from Jizan refinery

Saudi Aramco decided to terminate the Korean company SK E&C for engineering and construction from its Jizan refinery project, which will cost about $7 billion (SAR 26.25 billion).

In October 2012, Aramco awarded SK E&C a contract to create a $1.2 billion crude distillation unit in Jizan, according to a report published by Meed magazine. S&K asked to up the price to $1.2 billion; however, Aramco refused.

Aramco explained that it was willing to pay an additional $750 million, but S&K later increased the price to $925 million, and insisted to up the contract price to $1.2 billion.

After terminating its deal with S&K, Aramco later awarded the project to KBR America, one of the west's leading engineering and construction services companies, according to the report.