DUBAI: Oil giant Aramco and petrochemicals manufacturer SABIC selected on Thursday British energy services provider Wood Group to develop the world’s largest fully integrated crude oil to chemicals (COTC) complex in Saudi Arabia.
Wood Group will develop the $20 billion complex and provide front-end engineering design and project management services during the engineering, procurement and construction phase.
The energy service provider will also support the development of the complex that is expected to process 400,000 barrels a day and around 9 million tons of chemicals and base oils annually.
The agreement coincided with the visit of Saudi Crown Prince Mohammed bin Salman to the United Kingdom. It also follows the signing of a Memorandum of Understanding in November 2017 between Saudi Aramco and SABIC to assist in bringing the mega-project to its next stage of development.
The scope of the contract primarily includes the finalization of the project, selection of technology providers, updating project economics and performing the front-end engineering design.
The project is expected to achieve a direct conversion rate from crude oil to chemicals of almost 50 percent.
“This offers the Kingdom solid opportunities to produce chemicals as a feedstock as part of Saudi Aramco’s efforts to maximize return on investments in hydrocarbon resources,” President and CEO of Saudi Aramco, Amin H. Nasser said.
“This is an important milestone in a partnership that we are proud of between Saudi Aramco and Sabic, a partnership that is in line with Saudi Aramco’s strategy for business integration, adding value and tackling global growth opportunities in chemicals,” he added.
It will be capable of maximizing chemical yield, recycling by-products, optimizing resources and driving efficiencies of scale, Nasser explained.
“Ours is a business relying on finite natural resources for our feedstock. We have an obligation to deploy those resources as efficiently and in the most sustainable manner possible,” Vice Chairman and CEO of SABIC Yousef Al-Benyan said.
The project will generate the world’s highest proven yield conversion rate of oil to chemicals in a competitive and sustainable way, according to Al-Benyan.
The contract is expected to continue through to the start of operations in 2025.
By 2030, the COTC complex is expected to be a significant contributor to Saudi Arabia’s GDP and play a key role in helping the continued economic diversification from crude exports to higher value industrial products.
Saudi Aramco, SABIC sign deal with Britain’s 'Wood Group' to develop world’s largest crude oil to chemicals project
Saudi Aramco, SABIC sign deal with Britain’s 'Wood Group' to develop world’s largest crude oil to chemicals project
Saudi industrial output rises 8.9% in December: GASTAT
RIYADH: Saudi Arabia’s industrial production rose 8.9 percent in December from a year earlier, driven by stronger mining and manufacturing activity, signaling continued momentum in the Kingdom’s non-oil and energy sectors.
The Industrial Production Index reached 113.6 in December, up from 104.3 a year earlier, the General Authority for Statistics said.
The latest IPI figures underscore continued momentum in the Kingdom’s industrial sector as Saudi Arabia pursues economic diversification under its Vision 2030 agenda.
In its latest report, GASTAT stated: “Preliminary results indicate an increase of 8.9 percent in the IPOI in December 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity and water supply, sewerage and waste management and remediation activities.”
Mining and quarrying activity — the largest component of the index — increased 13.2 percent year on year after Saudi Arabia raised oil production to 10.1 million barrels per day from 8.9 million bpd a year earlier. Manufacturing expanded 3.2 percent, supported by a 13.4 percent rise in chemicals output and a 7.3 percent increase in food production.
The sub-index of electricity, gas, steam and air-conditioning supply activity recorded an annual decrease of 2.5 percent.
The sub-index of water supply, sewerage and waste management and remediation activities increased 9.4 percent.
Compared to November, Saudi Arabia’s IPI recorded a marginal decline of 0.1 percent.
On a monthly basis, the sub-index of mining and quarrying activity increased 0.3 percent.
Manufacturing activities also rose 0.3 percent in December compared to the previous month, driven by a 2.8 percent increase in the manufacture of chemicals and chemical products.
Compared to November, the manufacture of food products increased 9.6 percent in December.
Overall, the index of oil activities advanced 10.1 percent year on year in December, while non-oil activities increased 5.8 percent.
Compared to November, oil activities decreased 0.3 percent, while non-oil activities increased 0.4 percent.
The IPI measures changes in industrial output based on the International Standard Industrial Classification framework and covers mining, manufacturing, utilities and waste management sectors.
