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The Petro Rabigh joint venture of state oil giant Saudi Aramco and Japan’s Sumitomo has acknowledged that construction of its Rabigh 2 expansion project will not be completed until the second quarter of 2017 with the anticipated total development cost now 10% higher than the previous figure.
Petro Rabigh says that while the majority of electrical and non-electrical utilities have been completed, new ethane cracker units have begun operating and cumene and phenol units are ready, completion of other units will be delayed due to “construction market challenges.”
The company says that delays in the schedule and scope changes in the work program are expected to increase the project cost to SR34bn ($9.07bn). This is not the first schedule revision: in January the JV announced a nine-month delay in completion, taking the target to September 2016, as well as an increase in project cost by SR1bn ($267mn) to SR31bn ($8.27bn – MEES, 8 January). (CONTINUED - 740 WORDS)
DATA INSIDE THIS ARTICLE
|table||Aramco Petchem Jv Key Products (‘000 T/Y)|