SAMREF Refiney. Credit: Samref

Aramco and ExxonMobil Plan Major Upgrade to Transform SAMREF Refinery into Integrated Petrochemicals Complex

Saudi Aramco has recently taken significant steps toward upgrading the SAMREF refinery, a 50:50 joint venture between Saudi Aramco and ExxonMobil, located in Yanbu, on Saudi Arabia’s Red Sea coast.

It is one of the Middle East’s leading and most sophisticated refineries, processing over 400,000 barrels per day (b/d) of Arabian Light crude oil. It is one of the oldest and largest refineries in the Kingdom, exporting products to Europe, North America, and Asia. The refinery previously underwent a clean fuels upgrade in 2014 to reduce sulfur content in its products. The refinery is notable for its high yield of gasoline and distillate products, exceeding 80% per barrel—higher than many comparable refineries. Its product mix can be adjusted to meet seasonal or market-specific demands, reflecting its processing flexibility.

Key Developments:

• MoU with ExxonMobil: In May 2025, Aramco and ExxonMobil signed a memorandum of understanding (MoU) to evaluate a significant upgrade of the SAMREF refinery. The planned upgrade aims to transform the facility from a conventional oil refinery into a world-class integrated petrochemicals complex. This move is part of Aramco’s broader strategy to increase the value derived from its crude oil by expanding into high-value petrochemicals.
• Strategic Objectives: The SAMREF upgrade is a core component of Aramco’s $100 billion liquids-to-chemicals program, which seeks to convert up to 4 million barrels per day of crude oil into petrochemicals and chemical feedstocks by 2030. This initiative is central to Saudi Arabia’s ambition to maximize economic returns from its hydrocarbon resources and diversify its downstream portfolio.
• Scope of Upgrade: The envisioned project involves adding a mixed-feed cracker to the existing refinery, enabling the production of a broader range of petrochemical products. This would align SAMREF with other major Aramco projects, such as the planned expansions at the SASREF and Yasref refineries, which are also being converted into integrated refining and petrochemical complexes

Recent Announcements:

• The MoU was signed during the Saudi-US Investment Forum in Riyadh in May 2025, underscoring the importance of international partnerships in Aramco’s downstream expansion plans.
• Aramco’s CEO Amin Nasser reported that, as of the end of 2024, the company had achieved 45% of its liquids-to-chemicals program target, with ongoing progress at SAMREF and other key sites.

A Word of Caution:

This latest development comes on the heels of Aramco’s recent announcements of other mega-project transformations, including the $10 billion expansion of the SASREF refinery (to add 400,000 b/d of petrochemicals capacity) and the $7 billion upgrade of the Yasref refinery (to integrate a 2.5 million-ton-per-year ethylene cracker). These projects are part of Aramco’s broader $100 billion liquids-to-chemicals program, which aims to shift its downstream focus from fuels to high-value chemicals.

Mohammed Al-Qahtani, Aramco’s downstream president, previously explicitly affirmed the 4 million b/d target in a 2024 statement:

“The planned Yasref expansion aligns with our downstream strategy to unlock the full potential of our resources, including converting up to four million barrels per day of crude oil into petrochemicals by 2030.”

However, as industry analysts, while recognizing the impressive scale of the recently announced petrochemical transformation projects, we must caution this ambitious 4 million b/d target faces significant hurdles:

• To put things in perspective, 4 million b/d of crude oil—corresponding to approximately 200 million tonnes/year—is equivalent to about half of today’s global plastics market, which would require unprecedented speed and scale in petrochemical conversion project execution.
• Critically, full-barrel conversion technology—which would enable near-total transformation of crude oil into chemicals without producing fuels—does not yet exist at commercial scale. Current state-of-the-art refineries convert only 15–20% of each barrel to chemicals, with the rest yielding fuels.
•  S-Oil's Shaheen project employing TC2C technology developed by Saudi Aramco Technology Company (SATC) is presently about half-way complete and has a scheduled oil uptake capacity of 2.3 million tonnes of Arab Light, corresponding to 1.15% of the stated objective.
• Aramco’s timeline (less than six years to 2030) would also require parallel delivery of many more mega-projects than those recently announced, each typically requiring 5–7 years to complete, to reach this upper target.
   

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