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Saudi Arabia delays again bids for Jizan refinery

Oil & Gas Journal

Eric Watkins
Senior Correspondent

LOS ANGELES, June 5 -- Saudi Arabia has delayed for the third time a tender for bids for a projected 250,000-400,000 b/d refinery in the southwestern province of Jizan, according to local media.

"We were informed of the delay…and we are awaiting more clarifications," a source from one of the consortia bidding for the project told the Al Watan newspaper. No reason was cited for the delay.

Al Watan did not name the source, but said Bechtel, Foster Wheeler, Technip, and Snamprogetti are among the foreign companies that have set up consortia with Saudi firms to bid for the project.

Other interested firms include Petronas, Formosa Petrochemical Corp., Reliance Industries, China National Offshore Oil Corp., and Petroleo Brasileiro SA (Petrobras).

The Saudi government has approved eight domestic firms to participate in joint ventures: Nama Chemicals, al-Arabiya for Water and Energy Development, Advanced Petrochemicals and Refineries, National Industrialization, Obeikan Investments, Arabian Peninsula for Industrialization and Petroleum Services, Taqaat and Adbel-Kader al-Bakry and Sons Industrialization.