Aramco inks expansion deal with Sumitomo

By Anthony Clark, Plastics & Rubber Weekly

Saudi Aramco is on the brink of signing a deal with Sumitomo Chemical for the expansion of the Petro Rabigh facility. The news was broken by Aramco's president and ceo Khalid Al-Falih during the 2009 Local Content Forum held at the Chamber of Commerce and Industry in the Eastern Province, Saudi.

Petro Rabigh, on the Red Sea, will operate independently but Sumitomo will have responsible for the sale of its petrochemical derivatives, it was explained. Construction could be underway within the year with an on-stream target of 2013-14.

During his presentation Al-Falih reassured the local industrial sector that, despite the current tough global economic conditions and the challenges faced by the energy sector, the Kingdom still holds on to its long-term investments in expanding its oil and gas sectors and its programmes to enhance local and global energy supplies. Saudi Aramco's numerous needs, he said, are similar to those of other major sectors such as the petrochemicals, water and electricity sectors.

He also announced the establishment of an industrial training centre that will be located in al-Hasa, and another to support the oil services based in Dammam.

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Staff report from Plastics & Rubber Weekly (a Crain publication)