| KHOBAR, Saudi Arabia, June 21
KHOBAR, Saudi Arabia, June 21 State oil giant Saudi Aramco and
Japan's Sumitomo Chemical are close to signing multi-billion-dollar contracts to expand
their petrochemical complex in Saudi Arabia, industry sources said.
Aramco and Sumitomo have taken longer than expected to pick contractors for the Rabigh II
petrochemical expansion project, which is expected to cost around $7 billion, but three sources
in Saudi Arabia said they now expect the deals to be signed next week after some contractors
lowered their bids for the work.
The successful bidders include Britain's Petrofac, South Korea's GS Engineering and
Construction, Italy's Saipem and Japan's JGC, sources said.
Under Rabigh II, an existing ethane cracker will be expanded and a new aromatics complex
will be built using around 3 million tonnes per year of naphtha to make higher-value
JGC is to expand the existing ethane cracker at the complex located at Rabigh on the Red Sea
coast of Saudi Arabia.
Sumitomo, Petrofac, Saipem, and JGC declined to comment, while Aramco was unavailable for
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(Additional reporting by Yuka Obayashi in Tokyo, Danilo Masoni in Milan, Sarah Young in London;
Editing by Daniel Fineren)