SAMREF Deal a First for Aramco Services Co.
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Author: Judi Ottman (Saudi Aramco News)
Released 19 March 2008
HOUSTON, March 19, 2008 -- Aramco Services Co. (ASC) and Saudi Aramco Mobil Refinery Co. Ltd. (SAMREF) entered into an agreement Feb. 25 for ASC to provide SAMREF with procurement and logistics (P&L) services for materials marketed in North and South America. The contract, effective immediately, is for an initial five-year term.
Mohammed Y. Al-Qahtani, seated at left, and Saleh Hassoubah co-sign the agreement at a ceremony at ASC. Joining in on the celebration were ASC executives, standing from left, Abdulaziz A. Al-Ajeeb, manager of the P&L Department; Brian Macbeth, associate general counsel; Abdulwahab M. Al-Abbas, manager of the Industrial Relations Department; and Greg Dickinson, vice president.
ASC president and CEO Mohammed Y. Al-Qahtani and SAMREF Contracts and Purchasing manager Saleh Hassoubah co-signed the agreement at a ceremony at ASC. Through its P&L Department, ASC will buy and ship materials such as spare parts, valves, fittings, pipes, bearings and other equipment to support SAMREF’s refinery operations.
SAMREF is equally owned by Saudi Aramco and ExxonMobil. Located in Yanbu‘, SAMREF is an export refinery. It operates crude oil refining facilities that process about 400,000 barrels per day to produce top-quality gasoline, diesel and other premium fuels. The finished products are exported to customers in Europe, North America and the Far East.
Although ASC has long provided P&L services to Saudi Aramco, this is the first time ASC will provide such services to a Saudi Aramco joint-venture company.
“On behalf of SAMREF management, I would like to say that we are very pleased to enter into this business arrangement with ASC,” Hassoubah said. “The company has a proven track record of service reliability and quality control, which, of course, is important to the success of our operations. We also look forward to benefiting from ASC’s long-established agreements and network of qualified suppliers.”
Abdulaziz A. Al-Ajeeb, manager of the ASC P&L Department, said, “This is a moment of celebration for the P&L staff and all of us here at ASC. I am very proud of the ASC team who worked through the commercial and legal details of this service agreement. We look forward to successful implementation of this agreement, and also extending ASC procurement and logistics services to other joint-venture companies in the future.”
(Article by Judi Ottmann)