Strategic agreement sets the stage for upgrading Samref refinery and developing an integrated petrochemical complex in Saudi Arabia
ExxonMobil, Saudi Aramco, and their joint venture Saudi Aramco Mobil Refinery Company (Samref) have entered into a Venture Framework Agreement (VFA) to assess a large-scale transformation of the Samref refinery located in Yanbu Industrial City, Saudi Arabia. The proposed initiative focuses on modernising the existing refining operations while expanding the site into a fully integrated petrochemical complex, supporting the Kingdom’s broader downstream and industrial growth ambitions.
The agreement marks a significant milestone in the long-standing collaboration between Aramco and ExxonMobil. Under the VFA, the partners will jointly evaluate potential capital investments aimed at upgrading refinery infrastructure, diversifying product output, and enhancing operational efficiency. Central to the assessment is the production of higher-value products, including advanced petrochemicals and premium-quality distillates, while simultaneously reducing the environmental footprint of the facility.
Advancing High-Value Downstream Production
A key objective of the proposed upgrade is to increase the conversion of crude oil and petroleum liquids into value-added chemicals and cleaner fuels. This approach aligns with Aramco’s liquids-to-chemicals strategy, which seeks to maximise the economic value derived from hydrocarbon resources while meeting evolving market demand for performance-driven chemical products.
The companies are exploring opportunities to introduce advanced processing technologies that would enable greater feedstock flexibility and higher conversion rates. By producing a broader portfolio of high-performance chemicals and refined products, Samref could strengthen its competitiveness both regionally and globally, while contributing to Saudi Arabia’s expanding petrochemical sector.
Mohammed Y. Al Qahtani, Aramco’s Downstream President, highlighted the strategic importance of the initiative, noting that the next phase of Samref represents a continuation of Aramco’s long-term collaboration with ExxonMobil. He emphasised that the project is designed to enhance downstream value creation, support industrial diversification, and position Samref as a catalyst for petrochemical growth within the Kingdom.
Focus on Emissions Reduction and Operational Efficiency
In parallel with production upgrades, the partners will assess opportunities to reduce emissions and improve overall environmental performance. The evaluation includes an integrated emissions-reduction strategy that aims to lower greenhouse gas intensity across refining and petrochemical operations.
Potential measures under consideration include energy efficiency improvements, enhanced process integration, and the adoption of lower-emission technologies. The focus on producing high-quality distillates with improved emissions profiles also supports broader efforts to align refining operations with global sustainability goals.
Jack Williams, Senior Vice President of Exxon Mobil Corporation, reaffirmed ExxonMobil’s commitment to the partnership and its presence in Saudi Arabia. He stated that the proposed project aligns with ExxonMobil’s strategy of investing in high-value opportunities that respond to society’s evolving energy needs while contributing to a lower-emissions future.
Engineering Studies and Project Evaluation
As part of the next steps, the companies plan to begin a preliminary front-end engineering and design (pre-FEED) phase. This stage will evaluate technical configurations, cost estimates, and operational synergies to maximise the advantages of integrating refining and petrochemical production at the Yanbu site.
The proposed development aims to enhance Samref’s operational resilience, improve asset utilisation, and ensure the facility remains competitive in a rapidly evolving downstream landscape. However, the partners emphasised that the project remains subject to market dynamics, regulatory requirements, and final investment approvals from both Aramco and ExxonMobil.
Samref’s Strategic Role in Saudi Arabia’s Energy Landscape
Samref is a 50:50 joint venture between Saudi Aramco and Mobil Yanbu Refining Company Inc., a wholly owned subsidiary of Exxon Mobil Corporation. The refinery currently has the capacity to process more than 400,000 barrels of crude oil per day and produces a wide range of energy products, including propane, automotive diesel, marine heavy fuel oil, and sulphur.
Located on the Red Sea coast, the Yanbu facility plays a vital role in supplying fuels to domestic and international markets. A potential upgrade and expansion into petrochemicals would further strengthen Samref’s strategic importance, supporting Saudi Arabia’s goals of industrial diversification, export growth, and long-term energy value creation.
If approved, the project could position Samref as a next-generation integrated refining and petrochemical hub, combining scale, efficiency, and sustainability to meet future demand for fuels and chemicals across multiple industries.
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