Saudi Aramco to begin Jazan refinery operations by 2019-end

Saudi Aramco, the world’s largest oil producing company, is expecting operations to commence in Jazan integrated petrochemical refinery and the PRefChem integrated refinery and petrochemicals complex to start operations by the end of the year, the state-oil giant said in its bond prospectus listed on the London Stock Exchange on Monday.

The two refineries will increase its gross refining capacity to 5.6 million barrels per day and net refining capacity to 3.7 million barrels per day. The net chemical production capacity will rise to 20.8 million and gross chemical production capacity to 40.2 million tons per year.

Read: Saudi Aramco world’s most profitable firm in 2018 with net income of $111 bln

Jazan will have a full capacity to process 400,000 barrels of crude oil per day in 2020, while PRefChem is expected to have the capacity to process 300,000 barrels of crude oil per day, according to the prospectus.

Oil price

Meanwhile, Aramco said it expects international crude oil prices to remain volatile after the significant fluctuations of recent months.

“Fluctuations in the price at which the company is able to sell crude oil could cause the company’s results of operations and cash flow to vary significantly,” it added.

In 2018, Aramco produced 13.6 million barrels per day of oil equivalent, including 10.3 million barrels per day of crude oil.

Ghawar field, the largest oilfield in the world, had 58 billion barrels of oil equivalent in combined reserves at the end of 2018, and 48.3 billion in liquid reserves, according to the bond prospectus.