21-11-2013

SATORP progress marches on

Executives from Saudi Aramco, Total, and their joint venture, Saudi Aramco Total Refining and Petrochemical Co. (SATORP) met this week to see the latest progress on the SATORP conversion refinery in Jubail.
     
The meeting and site visit was a follow-up of an earlier gathering of CEOs in April, and it provided a chance for Saudi Aramco president and CEO Khalid A. Al-Falih, Total chairman Christophe de Margerie and SATORP CEO Fawwaz I. Nawwab to mark the latest steps in the refinery’s construction. The visit also allowed the company executives a chance to examine plans for the refinery’s scheduled full startup.

“This visit marks an important milestone for SATORP, and for the partnership between Saudi Aramco and Total,” said Nawwab. “By now, construction is nearly complete, and many of our units at SATORP Refinery are already producing products for local and international markets. As we move toward our final startup in the next few months, we are ensuring that SATORP delivers on its commitments to provide reliable petrochemical and fuel products to our customers, as well as a new catalyst for economic growth in the Kingdom.”

With the creation of SATORP, two oil industry giants — Saudi Aramco and Total — have agreed to combine their strengths at a crucial time in the global economy, as the world’s demand for energy and for petrochemical products continues to increase. Initially signed in 2006, with construction commencing in 2010, SATORP has become a key driver for industrial development and growth in Jubail and a magnet for local and foreign investment.

SATORP refinery will produce ultra-low sulphur refined products including gasoline, kerosene, and diesel complemented with different quantities of petrochemical products such as benzene, paraxylene and propylene to enhance the economic return of the complex. Petroleum coke is another product that will be produced in the Kingdom for the first time.

Joint ventures such as SATORP are not only incubators for Saudi-owned small- and medium-size manufacturers and service providers. They fit into Saudi Aramco’s commitment to foster a knowledge-based economy in which thousands of well-paid Saudi technicians, engineers and operators can find exciting job opportunities. Current employment at SATORP has reached 1,262, including secondees from Saudi Aramco and Total.

As of Oct. 31, 99.4 percent of the overall project had reached completion. Currently, 90.9 percent of refinery units have been handed over to operation. The overall project cost is expected to be under budget.

With several units already in full operation, SATORP is already marking its presence on the global markets. The first production of hydrogen commenced in March. The first crude unit was handed over to operation in April. And as of September, SATORP successfully and safely launched its first shipment of 80 tons of fuel oil at King Fahad Industrial Port (KFIP), where Saudi Aramco lifted this shipment. Shipments of various products have followed.