RIYADH, 10 January — In what is described as the first project of its kind in the Kingdom and the third in the world, an SR200 million Saudi-British joint venture project will recycle waste lubricants for the production of 70,000 tons of lube oil at its plant in Jubail toward the end of this year.
The project took off with the United Lube Oil Company (Unilube) signing contracts worth SR7.6 million for the installation of pumps, valves and electrical equipment with three Saudi companies. Unilube chairman Ali Al-Jedaie signed the contract in the presence of British Minister of Trade Richard Caborn with Adel Al-Hashim, vice president of Saudi Pumps, Muhammad Abu Nayyan, group managing director of Abu Nayyan Trading, and Muhammad Shaban, president of ABB Saudi Arabia, on behalf of ABB Electrical Corporation.
Caborn, who arrived in Riyadh late Monday after a stop in Bahrain, met with Commerce Minister Osama Faqeeh and Prince Abdullah ibn Faisal ibn Turki, head of the General Investment Authority. The two ministers discussed ways to bolster economic and commercial cooperation as well as prospects of British investment in more technology-based projects in the Kingdom.
Commenting on the Saudi-British initiative, the British minister said: "What is particularly satisfying about Unilube is that it not only brings economic advantages to the Kingdom, but the project also has major environmental benefits for the whole region."
He said the recycling of lubricants was a global issue with implications for future generations. "The British government is very pleased that a major beneficiary of the assistance provided by the offset initiative should also result in such an important ecological boost," he added.
Unilube, an economic offset company, has been set up under the Al-Yamamah Offset Program with assistance from the Saudi Industrial Development Fund and BAE Systems' project finance initiative. It is a joint venture between Saudi investors and Enprotech (Middle East).
The company will construct a 70,000 ton lube oil recycling plant in Jubail and a second lubricant oil recycling plant in the Western Province, according to Ali Al-Jedaie.
"Our plant will be the most modern recycling center in the Middle East, using miniaturized refinery technology. In many ways, ours will be the most advanced plant of its kind in the world," the chairman said, adding: "With the formation of Unilube, Saudi Arabia is sending a strong message that we are an environmentally concerned global citizen."
Elaborating on his remarks, Nigel Perry, vice chairman of Gulf Hill & Knowlton, said the two other lube recycling plants are operating in Spain and Denmark. He pointed out that some 225,000 tons of waste lubricants are currently dumped in the Kingdom.
The Unilube plant will recycle 70,000 tons of waste lube as part of its operations due to begin before the end of this year. Besides catering to the domestic market, part of its production of base oil will be earmarked for the Gulf market.
