Jacobs Engineering Group, one of the world's largest providers of technical, professional, and construction services, said it has won a major contract from Saudi Aramco Lubricating Oil Refining Compnay (Luberef) to provide project management consulting (PMC) services for an expansion project at its lube oil refinery in Yanbu, which is estimated to cost $1 billion.

Luberef is a joint venture between Saudi Aramco and Jadwa Industrial Investment and is one of the world's leading suppliers of high quality base oil.

As per the terms of the agreement, Jacobs will provide PMC services for both inside battery limits (ISBL) and outside battery limits (OSBL).

The ISBL services include a new lube oil unit, a new sulfur complex, a new hydrogen manufacturing unit, and an expansion of the propane de-asphalting unit. The OSBL services involve all utilities, tanks and infrastructure.

The Saudi company officials did not disclose the contract value, however noted that the overall expansion project cost is estimated at approximately $1 billion.

Jacobs' Leiden, Netherlands office is managing the overall project in collaboration with its offices in Al Khobar, Saudi Arabia and other locations.

The Yanbu refinery expansion is expected to increase base oil production to meet future demands for high quality GR-II and GR-III base oils; increase the GR-I Bright stock to almost double current production; produce higher-value byproducts (naphtha, diesel, and kerosene); and satisfy Kingdom requirements for producing drilling fluid, which is currently being imported.

Luberef's president and CEO Hasan Jamaan Alzahrani said the expansion project would add value to the Kingdom's economy including employment, and help provide quality lubricants to its key markets.

"It is part of Luberef's overall strategy to provide high quality base oil with different product slates of GR-I, GR-II, and GR-III to strengthen Luberef's position as a leading supplier. Luberef is looking forward to working with Jacobs to execute this major milestone of the expansion project," he stated.

Jacobs Group VP Bassim D. Shebaro said, "We are delighted to continue our partnership with Luberef by working on this significant project at the Yanbu refinery. After our successful Feed efforts, we welcome the opportunity to continue to support Luberef's production of higher-grade clean fuels."-TradeArabia News Service