Saudi Aramco and SABIC have awarded a contract to US contractor KBR for the project management and front end engineering design (FEED) of its proposed crude oil-to-chemicals (COTC) complex. The value of the contract was not disclosed.

The award follows the signing of a Memorandum of Understanding (MoU) last November between the two Saudi giants. KBR said that as the second project management contractor, it will provide pre-FEED, FEED and management services to develop the complex.

As well as the FEED phases, the contract also includes finalization of the project scope, selection of technology providers and an update on the project’s economics.

The project will be executed through KBR’s US offices in Houston, Texas, as at Al-Khobar in Saudi Arabia and at Chennai in India. Work is expected to continue through to the start-up of the complex in 2025.

Amin Nasser, president and CEO of Saudi Aramco, said the contract award to KBR is another milestone in the Kingdom’s continuous drive to redirect and optimize its abundant natural resources and maximize its chemicals yield.

The COTC complex is expected to process 400,000 bbl/d of crude oil to produce around 9 million t/y of chemicals and base oils. A final investment decision on the project is anticipated by the end of 2019.