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.