Saudi Arabia’s state oil giant, Saudi Aramco, announced that its representatives had joined Sadara and Royal Commission of Jubail for the ground-breaking ceremony of a plant that Texas, US-headquartered contractor Fluor will build for Halliburton at the ethylene oxide / propylene oxide (EO / PO) cluster of Plaschem Value Park in Jubail Industrial City 2.
Halliburton’s facility is expected to be operational by the end of 2020, and its commissioning with coincide with the launch of the two, 7km-each pipelines that Sadara is currently developing for EO and PO delivery.
The ground-breaking of both pipelines was announced on 3 March, 2019 by Sadara Chemical Co, a joint collaboration between Saudi Aramco and Dow. Amec Foster Wheeler and Partners Engineering Co – Al Khobar has delivered design, engineering, material specifications, and procurement work for the EO and PO pipelines.
Saudi Aramco’s senior vice president of upstream, Mohammed Y Al Qahtani, was joined at the ceremony by Halliburton’s president and chief executive officer, Jeff Miller; Saudi Aramco’s vice president of petroleum engineering and development, Nasir K Al-Naimi; and Sadara’s CEO, Dr Faisal Al Faqeer. The officials reviewed a model of the manufacturing plant during their visit.
Fluor revealed in late-February 2019 that it had broken ground after being awarded the engineering, procurement, and construction (EPC) contract to build Halliburton’s plant in Q4 2018. EPC work will be delivered after front-end engineering and design work is complete, with Fluor to lead contracting activities from its Al Khobar offices.
Upon the plant’s completion, Halliburton will use the facility to manufacture process treatment chemicals that will be sold to Saudi Aramco for upstream and downstream drilling and excavation work.
Saudi Aramco said the manufacturing of these specialty products in the kingdom will support its in-country value programme, Iktva, which is created to increase local employment figures in Saudi Arabia. Commenting during the ground-breaking ceremony, announced by Aramco on 28 February, Al Qahtani said the project was “about looking forward”.
He added: “Projects like this bring [Vision 2030] to reality. These types of projects will transform Saudi Arabia from being an importer of specialty products to an exporter.”
Aramco’s Iktva programme, which has a benchmark of 70% localised employment and content, will be supported by projects such as Halliburton’s, Qahtani said.
“To date, we have achieved an overall localised content level of 51%,” he continued. “This project is a win-win-win for Saudi Aramco, Halliburton, and the kingdom.”