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July 18, 2019

Saudi Aramco places $18bn of contracts for oil and gas megaprojects

Field development projects will boost the kingdom’s oil and gas output and create thousands of jobs for young Saudis.

By MEED   

Saudi Arabia’s national oil company Saudi Aramco has signed 34 oil and gas field development contracts worth a combined $18 billion on its Marjan and Berri oil and gas field megaprojects.

Aramco investments 2019

The two schemes aim to boost production capacity at the Marjan and Berri fields by about 550,000 barrels a day (b/d) of Arabian crude oil and 2.5 billion cubic feet of gas a day (cf/d).

Saudi Arabia is currently the world’s second-biggest oil producer with an output of about 12.2 million b/d. It is the eighth biggest producer of natural gas, producing about 14 billion cf/d of natural gas.

“These two programmes will significantly enhance Saudi Aramco’s oil production and gas processing capabilities, both strengthening our position as the leading integrated energy supplier and meeting growing long-term demand for petroleum,” Amin Nasser, Aramco’s president and CEO said in a press release.

The 34 engineering, procurement and construction (EPC) contracts were shared between 16 local and international contractors, with Saudi companies accounting for 50 per cent of the awards.

The two megaprojects are expected to create thousands of jobs for Saudi nationals, a top priority for Riyadh.

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As part of the oil company’s In-Kingdom Total Value Add (IKTVA) programme, Aramco’s contractors are required to maximise the amount of material and equipment sourced from local suppliers. The programme aims to increase the state firm’s locally-sourced goods and services to 70 per cent by 2021.

The Marjan crude increment programme is estimated to be worth over $15 billion and consists of about 20 EPC packages.

The scheme is an integrated project for oil, associated gas, non-associated gas and cap gas from the Marjan offshore oil and gas field in the Gulf.

The Marjan development plan includes provision for a new offshore gas-oil separation plant (GOSP), and 24 offshore oil, gas and water injection platforms.

Through the Berri increment programme, the company plans to add 250,000 b/d of Arabian light crude from the offshore oil and gas field.

The planned facilities will, upon completion, include a new GOSP on Abu Ali Island to process 500,000 b/d of Arabian light crude oil, and additional gas processing facilities at the Khursaniyah gas plant to process 40,000 b/d of associated hydrocarbon condensate.

MEED
This article is sourced from Offshore Technology sister publication www.meed.com, a leading source of high-value business intelligence and economic analysis about the Middle East and North Africa. To access more MEED content register for the 30-day Free Guest User Programme. 

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