Saudi Aramco signs deals worth $4.5bn

By Davis Thattil | Dec 31, 2017
Saudi Aramco recently signed eight contracts with several international oil and gas service companies for major oil and gas projects worth a total of $4.5bn.  Tecnicas Reunidas has been awarded a contract for the Gas Compression program in the Southern Area, which will improve and sustain gas production from Haradh and Hawiyah fields for the next 20 years by boosting production by 1 billion standard cubic feet per day (scf/d). The contracts will be on a lump-sum-turnkey (LSTK) basis.

Italy’s Saipem has been awarded a LSTK contract to build the Hawiyah Gas Plant expansion, which will provide additional has processing facilities to process raw sweet gas. The gas plant expansion will add an additional 1,070 million standard cubic feet per day (MMSCFD) of raw sweet gas to meet the kingdom’s growing energy demand. The scope of works will include installing inlet facilities, two new gas treatment trains, dehydration and dew point control facilities, two sales gas compression units, steam turbine generation unit and an expansion of electrical and non-electrical utilities. Once completed, the Hawiyah gas plant will have a total production capacity of 3,860 MMSCFD, making it one of the largest gas processing facilities in the world.

Another contract has been signed with China Petroleum Pipelines Company (CPPC) for Haradh and Hawiyah pipeline. Under the package, CPPC will install 450 kilometers of pipeline network by early 2019 to allow the flow of 290 MMSCFD from the Haradh field to the Hawiyah gas plant. The contract has been awarded on a lump-sum, procedure, build (LSPB) model.

Abu Dhabi’s National Petroleum Construction Company (NPCC) was awarded a contract to develop the pipeline and trunk line project for the Safaniyah Field. McDermott will be for a Slipover Platforms and Electrical Distribution Platform project, also in the Safaniyah field.

Jacobs Engineering of USA signed an engineering and project management services for the Zuluf field development program. The Zuluf program will provide facilities to process 600 million barrels a day of Arab heavy crude oil from the Zuluf offshore field. The scope of work for the scheme includes water injection and oil wellhead platforms, tie-in platforms, trunk lines and flowlines in addition to 600 million barrels a day onshore central processing facilities.

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