Saudi Aramco to almost triple chemicals output by 2030

Saudi Aramco’s global refining capacity is set to rise to 8 to 10 million barrels per day by 2030, says a top official.
Updated 29 November 2016

Saudi Aramco to almost triple chemicals output by 2030

DUBAI: Saudi Aramco aims to almost triple its chemicals production to 34 million metric tons per year by 2030, a senior company executive said.
“In chemicals, our equity capacity, across our global operations, is expected to grow from 12 million metric tons per year to 34 million over the same period,” Abdulaziz Al-Judaimi, the company’s business line head for downstream, said in a speech at a conference in Dubai.
Over the same period Aramco’s global refining capacity is set to rise to 8-10 million barrels per day (bpd) from more than 5 million bpd currently.
The company’s refining capacity has grown as it has invested heavily to raise its oil production capacity to 12 million bpd.
Developing petrochemicals is part of the Saudi Vision 2030 economic reform plan announced this year which aims to diversify the economy away from oil.
Aramco has been integrating its refineries with petrochemical infrastructure as it develops its downstream business and expands its trading of refined products.
The integration will help it to maximize value from its hydrocarbon base, diversify feedstock and chemical products, which is key to Aramco’s plans to diversify its operations.
Aramco this year initiated the Middle East’s first mixed-feed cracker at its Sadara Chemical Company, a SR80 billion petrochemical joint venture with US company Dow Chemical.
It is also expanding its PetroRabigh facility, Rabigh 2, a joint venture with Japan’s Sumitomo Chemical. That facility is integrated with a refinery on the Red Sea coast.
In 2014, former Aramco CEO Khalid Al-Falih, who is now chairman of the company and Saudi Energy, Industry and Mineral Resources Minister, said Sadara and PetroRabigh would take the company’s total chemicals participated production capacity to more than 15 million tons per year.
“Next year, nine out of Saudi Aramco’s 15 refineries will produce chemicals, with conversion rates that can go to 20 percent of the total crude processed,” Al-Judaimi said.
The company has also set up ARLANXEO, a joint venture with Germany’s Lanxess, which Al-Judaimi said offered growth prospects.


Arabtec Holding said to hire AlixPartners for debt advisory

Updated 25 September 2020

Arabtec Holding said to hire AlixPartners for debt advisory

DUBAI: Dubai-listed contractor Arabtec Holding has hired advisory firm AlixPartners to help it restructure the company’s debt, two sources familiar with the matter said.

AlixPartners is assessing the company’s debt profile, before any potential discussions with Arabtec’s creditors, according to the sources, who declined to be named as the matter is not public.

Arabtec did not respond to a query for comment when contacted on Thursday. AlixPartners declined  to comment.

Arabtec Holding is due to hold a shareholder meeting on Thursday afternoon to decide whether to continue operating or liquidate and dissolve the firm after the pandemic hit projects and led to additional costs.

FASTFACT

 

Arabtec last month posted a first-half loss of 794 million dirhams ($216.18 million).

The company, which last month posted a first-half loss of 794 million dirhams ($216.18 million) and total accumulated losses of 1.46 billion dirhams, said on Sept. 9 that it was calling a general assembly under an article of UAE company law.

The law requires companies to vote on whether they should continue operating if their accumulated losses reach half of their issued share capital.

Shares of Arabtec Holding, which helped to build the Louvre Abu Dhabi and the world’s tallest skyscraper, the Burj Khalifa in Dubai, have plunged 56.7 percent this year. They were down almost 5 percent when a suspension of trading was triggered at 1 p.m. local time ahead of the meeting, which was being held in Abu Dhabi.

Several UAE companies have sought to extend debt maturities or agree better terms in recent years to avoid defaults, after an oil price crash hit energy services and construction.

This week, creditors started to enforce claims against Abu Dhabi-based Al Jaber Group, which has struggled since building up debt in the wake of a UAE real estate crisis and began talks with creditors in 2011.

Dubai-listed construction firm Drake & Scull is working under the UAE bankruptcy law to reach an agreement with its creditors in an out-of-court process.