Oil and gas majors Aramco and ExxonMobil and their joint-venture, Samref, recently added signatures to a new Venture Framework Agreement (VFA).
Under the deal, the three entities will evaluate a substantial upgrade to the Samref refinery based in Saudi Arabia’s Yanbu Al Bahr (Yanbu) on the Red Sea coast. Additional terms include a commitment to extend the current facility, transforming it into a petrochemical complex.
The enterprises aim to investigate capital investments to diversify present production and support an upgrade. New products will include high-quality distillates that offer high-performance chemicals and lower emission levels. The partners will also explore opportunities to enhance how the Yanbu refinery operates, cutting emissions from activities via an integrated strategy for emissions reduction.
Along with having interests in oil, gas and petrochemicals, both Aramco and ExxonMobil operate lubricant brands. Mobil supplies high-quality lubricants for Exxon, while Aramco owns the Valvoline line that produces full synthetic gear oil, engine oil, grease and other solutions.
Commenting on the recent VFA, the President of Aramco Downstream, Mohammed Y. Al Qahtani, stated that the new phase for the Samref refinery was another step in the Saudi Arabian oil company’s strategic long-term business relationship with ExxonMobil. Engineered to amplify the conversion of petroleum fluids and crude oil into valuable chemicals, the project emphasises Aramco’s dedication to improving downstream value creation and its current liquids-to-chemicals plans. He added that the agreement will also place Samref as a driving force for growth in the petrochemical sector of Saudi Arabia.
