KHOBAR - Saudi Kayan Petrochemical Co said on Saturday it signed a preliminary agreement with South Korea's Daelim Industrial Co to build a petrochemical plant. The plant will have the capacity to produce 300,000 tons per year (tpy) of low density polyethylene, and will be part of Kayan's giant petrochemical complex. Kayan, a unit of Saudi Basic Industries Corp (SABIC), signed a letter of intent with Daelim for the engineering, procurement and construction (EPC) of the plant in Jubail, on the Gulf's east coast, Kayan said in a statement on the Saudi bourse website. The preliminary agreement will last for three months, Kayan said. Daelim and Taiwan's CTCI have bid for the project, contracting sources told Reuters on Tuesday. The project was retendered along with an amines plant project Kayan plans to build at the complex. The first tender was awarded to UK Simon Carves, a unit of Indian Punj Lloyd, in 2007 as a fixed-price services contract while the amines plant was awarded to Samsung Engineering. Contracting sources expect an award to be made for the 210,000 tons per year amines plant in January. The complex will have an annual production capacity of 6 million tons of petrochemicals including ethylene, propylene and ethylene glycol from 16 plants. Al-Khafji oilfield projects bid deadline extended A joint venture between Saudi Arabia and Kuwait has extended the bidding deadline for two projects at Al-Khafji oilfield to Dec. 28, bidders said on Saturday. The original deadline for both contracts was Sept. 28, but has been extended several times at the request of bidders. The two projects cover expansion of offshore oil facilities and construction of water treatment facilities at the oilfield.
