Saudi Aramco has signed a pact with the Woodlands-based engineering company CB&I and U.S. oil major Chevron Corp. to enhance and commercialize technology expected to boost the Kingdom's chemical output, the company said Thursday.
The world's largest oil company said it struck the deal with CB&I and Chevron Lummus Global, a joint venture between Chevron and CB&I, to further develop thermal crude-cracking technology that can produce chemicals directly from oil.
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Saudi Aramco developed the technology to increase its chemical output in recent years, accelerating the Kingdom's efforts to diversify its economy and raise employment levels.
Under the recent deal, the companies will utilize 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 maximize the value of each barrel of crude oil it processes in the near future."