Aramco, Sumitomo make giant strides on Rabigh II development

Updated 26 May 2012
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Aramco, Sumitomo make giant strides on Rabigh II development

DHAHRAN: Saudi Aramco, together with its partner Sumitomo Chemical, have made significant progress on the feasibility of the Rabigh Phase II Project and will proceed to implement the expansion of a world-class petrochemical complex on the Kingdom's west coast.
Rabigh II will complement Saudi Aramco’s existing petrochemical investment portfolio especially in light of the Rabigh I petroleum refining and petrochemical production complex, currently owned by Rabigh Refining and Petrochemical Company (PetroRabigh), a joint stock company initially founded by Saudi Aramco and Sumitomo Chemical.
The Rabigh II feasibility study and front-end engineering design work were jointly undertaken and funded by Saudi Aramco and Sumitomo. As part of the next phase implementation of Rabigh II, Saudi Aramco and Sumitomo Chemical are finalizing various project milestones, including contracts for engineering, procurement and construction and other project-related agreements, as well as project financing.
Utilizing leading-edge technologies from Sumitomo Chemical and other companies, Rabigh II will explore maximization of existing synergies, the utilization of Saudi manpower, and development of the Kingdom's conversion industries.
“Our long standing partnership with Sumitomo Chemical continues to make further inroads with Rabigh II representing a significant milestone in Saudi Aramco’s downstream portfolio expansion and diversification strategy,” said Saudi Aramco CEO Khalid A. Al-Falih. “Both sponsors are thankful to the Ministry of Petroleum and Mineral Resources for their continued support for Rabigh’s expansion projects, and through which we endeavor to create further value for our stakeholder communities in the Kingdom with new businesses, entrepreneurial and job opportunities.”
Rabigh II’s development will include a new aromatics complex and an expanded facility to process 30 million standard cubic feet per day of ethane and approximately 3 million tons per year of naphtha as feedstock to produce a variety of high value-added petrochemical products. The total project investment is currently projected to reach approximately $7 billion.
The project is expected to begin operations in the first half of 2016. It is envisaged that PetroRabigh will be approached in due time and presented with the opportunity to serve as the project company for Rabigh II subject to PetroRabigh’s independent evaluation of the project feasibility results and separate corporate and regulatory approval procedure.
Rabigh II’s main products will be ethylene propylene rubber, thermoplastic polyolefin, methyl methacrylate monomer, polymethyl methacrylate, low density polyethylene/ ethylene vinyl acetate, para-xylene/benzene, cumene and phenol/acetone. Additionally, Saudi Aramco and Sumitomo Chemical will continue to implement other product lines on optimal schemes to realize further project optimization.


Jair Bolsonaro uses WEF platform to sell a ‘new Brazil’ to Davos elite

Updated 21 min 29 sec ago
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Jair Bolsonaro uses WEF platform to sell a ‘new Brazil’ to Davos elite

DAVOS, Switzerland: Brazil’s new president, Jair Bolsonaro, threw out the welcome mat for big business and major investors on Tuesday, telling a summit of CEOs at the World Economic Forum in Davos that his government would make the country one of the top 50 in which to do business.
Bolsonaro said he would work to open up Brazil’s relatively closed economy, reduce and simplify taxes, privatise assets and give his new justice minister the tools to tackle corruption and organized crime.
The newly-elected Brazilian president told the audience that he was “moved and honored” to be addressing the good and the great at Davos, calling the forum an opportunity to show the world a revamped Brazil that he was building.
“I want to introduce to all of you the new Brazil we are building,” he said. “We are committed to changing our history.”
He reassured political and business leaders in attendance that his government has the credibility and the tools required to reform his country.
Big investment to turn Brazil into a global tourist destination was the main thrust of Bolsonaro’s speech. But given the importance placed on climate change and protecting the natural world, he was keen to point out that he would strive to preserve the environment while developing the economy — saying policies on the two “should go hand-in-hand.”
Bolsonaro surfed a populist wave last year to ride to power, vowing an end to rampant corruption and a restoration of law and order in Brazil.
But staging his first foreign trip as president, Bolsonaro has left behind a scandal about suspicious payments involving his politician son Flavio Bolsonaro, who denies any wrongdoing.
Focusing instead on a pro-business message at the WEF, Bolsonaro told his well-heeled audience that he was determined to open up Brazil’s economy.