Saudi Aramco said it signed a partnership deal with the U.S. engineering company CB&I and oil major Chevron Corp. to enhance and commercialise technology expected to boost the Saudi Arabia’s chemical output.
A joint development agreement with CB&I and Chevron Lummus Global, a joint venture between Chevron and CB&I, will focus on developing thermal crude-cracking technology that can produce chemicals directly from oil.
Saudi Aramco developed the technology to increase its chemicals yield in recent years, accelerating the Kingdom's efforts to diversify its economy and raise employment levels.
Under the recent deal, the companies will utilise Chevron Lummus Global's hydro processing technologies and CB&I's ethylene cracker technology to enhance Saudi Aramco's technology.
"Saudi Aramco is going beyond the quick wins and is instead prioritizing investments in research and development and technology," Saudi Aramco CEO Amin Hasser said in a statement.
He called the joint development agreement a "technological first" which will "position Saudi Aramco to maximise the value of each barrel of crude oil it processes in the near future."
Patrick K. Mullen, CB&I’s president and chief executive officer said the deal is “a unique integration of advanced technology processes for the production of high-value petrochemicals from crude oil.”
Saudi Aramco’s proprietary thermal crude to chemicals technology will be combined with CLG’s hydroprocessing technologies and CB&I’s ethylene cracker.