Aramco plans to upgrade the Juaymah crude oil terminal LPG piping network.

State oil company Saudi Aramco has issued the letter of award (LoA) to Italian contractor Saipem for executing offshore refurbishment work at its Juaymah crude oil terminal.

The deal, for which the original scope involves upgrading the liquefied petroleum gas (LPG) piping network at the Juaymah natural gas liquids facility (NGLF), was recently awarded to Saipem, according to a source with knowledge of the scheme.

Aramco tendered the job to its long-term agreement (LTA) pool of offshore contractors last year as job number 53 of its contract release and purchase order (CRPO 53) system.

The contract value is understood to be about $250m, the source tells MEED.

MEED reported in September last year that Saipem had emerged as the frontrunner for the project.

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By GlobalData

Since then, Aramco is understood to have reviewed the project and altered the scope of work, resulting in a separation of the offshore and the onshore scope of the job.

While Saipem has been awarded the offshore package, Aramco is yet to award the onshore part of the project.

MEED understands the local contracting firm Imad and Abu Dhabi-based Target Engineering are vying for the onshore job.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here