Saudi Arabia has switched its development focus to refining, petrochemicals and gas after completing a program to boost oil production capacity to 12.5 million barrels per day (bpd) last year.
The 400,000 bpd Yanbu plant on the Red Sea coast is one of several at which the Kingdom is planning to raise refining capacity by more than 1.7 million bpd from 2.1 million bpd.
The deals were pending Conoco's final investment decision on the joint venture refinery, the sources said.
After considering bids submitted in January for packages to build the refinery, Aramco and Conoco have penciled in South Korea's SK Engineering to build a crude unit, Daelim Industrial for a gasoline unit, and GS Engineering to build a hydrocracker, industry sources said.
Spain's Tecnicas Reunidas would build a coking unit and India's Punj Lloyd oil storage units, they said.
"The list is pretty final," said one contractor. "But nothing has been awarded yet."
Spokespersons for all five firms and Aramco declined to comment on the contracts. Tecnicas Reunidas said it had bid for two packages at the refinery.
Should Conoco decide to go ahead with the plant, it and Aramco would notify contract winners in May, sources said.
Aramco and Conoco first announced the refinery in 2006. But the price tag for the refinery doubled to around $12 billion in 2008 from an initial $6 billion. The price tag has since fallen, industry sources said.
But the US firm has yet to take its final decision and is in the process of selling off assets to cut debt.
Minister of Petroleum and Mineral Resources Ali Al-Naimi said last month he had received no indication that anything would hold back investment in Yanbu.
A ConocoPhillips executive said late last month the firm was working through bids as it prepared to make its decision.
"This project really has to be a strong return project for us with cost and strong uplift," said Willie Chiang, senior vice president for refining and marketing at Conoco said last month.
The two firms delayed the bidding process for the refinery in 2008 amid uncertainty in global financial markets. They looked for contractors to reduce bids after the global economic slowdown reduced costs in an oil services market that had experienced rapid inflation in previous years.
The firms continue to push contractors to clip costs, industry sources said. Aramco and Conoco held meetings with contractors who were second lowest on two packages last week to push their prices down further.
Early indications were that both firms were pleased with cost savings, the sources said. "They are extremely satisfied with the budget, it is below their expectations," said one.
Aramco is also building a refinery of the same size with France's Total. Bidding for that refinery had also been delayed as the firms sent contractors back to the drawing board, eventually cutting construction costs to $9.6 billion from a highest estimate of $12 billion.
"The investment is viable, economics are better than in Jubail for at least the capital expenditure," said one source.
The refinery construction would be broken down to between 9 and 11 engineering, procurement, construction (EPC) packages.
Bidding for a solids handling unit has still not yet closed. It has been extended to June 1.
