Aramco, ExxonMobil, and Samref will evaluate upgrading the Yanbu refinery and developing an integrated petrochemical complex to boost value, efficiency, and sustainability.
ExxonMobil, Aramco, and Samref have entered into a Venture Framework Agreement (VFA) that sets the stage for evaluating a major upgrade of the Samref refinery located in Yanbu, Saudi Arabia, along with the potential development of a new integrated petrochemical complex. This agreement reflects the companies’ shared intention to explore large-scale investments that could significantly modernize the refinery’s operations and broaden its production capabilities, positioning the facility for long-term relevance in a rapidly evolving global energy landscape.
As part of this initiative, the partner companies will assess a range of capital investment options aimed at enhancing and diversifying the refinery’s output. These plans include boosting the production of premium distillates that offer lower emissions profiles, as well as manufacturing advanced performance chemicals. The collaboration will also focus on identifying measures to increase operational efficiency and to incorporate an integrated strategy designed to reduce emissions from the refinery’s activities. Such improvements align with global trends toward more sustainable industrial operations while supporting the Kingdom’s ambitions to expand its petrochemical and downstream sectors.
Mohammed Y. Al Qahtani, Aramco’s Downstream President, commented on the significance of this next chapter for Samref. He emphasized that the agreement represents an extension of Aramco’s longstanding strategic partnership with ExxonMobil. According to him, the envisioned project would play a transformative role by increasing the conversion of crude oil and other petroleum liquids into high-value chemicals, which is central to Aramco’s broader liquids-to-chemicals strategy. Al Qahtani further noted that advancing this initiative would strengthen Samref’s role as a core contributor to the growth of Saudi Arabia’s petrochemical industry.
Exxon Mobil Corporation Senior Vice President Jack Williams highlighted the value of their enduring partnership with Aramco and the history ExxonMobil shares with Saudi Arabia. He expressed the company’s interest in evaluating the proposed project, stating that it aligns with ExxonMobil’s broader strategy of investing in opportunities that promote the production of high-value products. These products are tailored to meet modern energy requirements while also supporting the transition toward a lower-emission global future.
To move the project forward, the companies will begin a preliminary front-end engineering and design (pre-FEED) phase. This phase is intended to optimize the project’s technical and economic aspects, strengthen Samref’s competitive position, and enable the refinery to cater to rising domestic demand for premium petrochemical products. However, the project’s advancement will depend on several factors, including market dynamics, the acquisition of necessary regulatory approvals, and final investment decisions from both Aramco and ExxonMobil.
Samref is currently a 50-50 joint venture between Aramco and Mobil Yanbu Refining Company Inc., a wholly owned subsidiary of Exxon Mobil Corporation. The refinery has the capacity to process more than 400,000 barrels of crude oil per day. Its output includes a broad mix of energy products such as propane, automotive diesel oil, marine heavy fuel oil, and sulphur, making it a vital asset in the region’s energy infrastructure.
