Saudi Aramco Rejects Bids for Oil Refinery Deals

Saudi Aramco has turned down bids for three of the four packages on a 2,400 megawatt (MW) integrated gasification combined cycle (IGCC) plant at an oil refinery in Jazan, industry sources have told Arab News.

The company has asked interested companies to submit cheaper offers as the initial bids failed to meet its estimation of each packages’ market value, according to one source.

“The original bid price exceeded the budget so they are trying to find ways to shrink the cost,” said a second source familiar with the matter.

Saudi Aramco is not retendering the fourth package as it is in talks with China’s Sepco III regarding that part of the project, sources said.

The IGCC plant will supply the 400,000 barrel per day oil (bpd) refinery and other consumers around the industrial port on the Red Sea coast.

(constructionweekonline.com, edited by Topco)