Saudi Aramco signs deals worth $4.5bn

Saudi Aramco has signed eight agreements worth a total of $4.5bn with several oil and gas service companies for a number of major projects.

Three of the signed deals were with Spain’s Tecnicas Reunidas for work involving Aramco’s gas compression programme in the Southern Area. The scheme will improve and sustain gas production from the Haradh and Hawiyah fields for the next 20 years by boosting production by 1 billion cubic feet a day (cf/d). Tecnicas Reunidas will be awarded the contracts on a lump-sum turnkey (LSTK) basis.

Italy’s Saipem will be awarded an LSTK deal to build the Hawiyah gas plant expansion, which will provide additional gas processing facilities to process raw sweet gas. The expansion will add an additional 1,070 million cf/d 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, a steam turbine generation unit and an expansion of electrical and non-electrical utilities.

Once completed, the Hawiyah plant will have a total production capacity of 3,860 million cf/d, making it one of the largest gas processing facilities in the world.

Under another agreement signed for Haradh and Hawiyah, China Petroleum Pipelines Company (CPPC) signed an agreement for developing a free flow pipeline contract. Under the package, CPPC will install 450 kilometres of pipeline by early 2019 to allow the flow of 290 million cf/d of gas from the Haradh field to the Hawiyah gas plant. The contract has been awarded on a lump-sum, procedure, build (LSPB) model.

The US’ Jacobs Engineering signed an engineering and project management services deal for the Zuluf field development programme. This will provide facilities to process 600 million barrels a day (b/d) of Arabian heavy crude from the Zuluf offshore field. The scope of works for the scheme includes water injection and oil wellhead platforms, tie-in platforms, trunk lines and flowlines, in addition to onshore central processing facilities.

Abu Dhabi’s National Petroleum Construction Company (NPCC) signed an agreement to develop the pipeline and trunk line scheme for the Safaniyah field, with the US’ McDermott inking a contract for a slip-over platforms and electrical distribution platform contract also in the Safaniyah field.

“These agreements we signed are part of our natural gas expansion, as we add about 1 billion [cf/d],” Amin Nasser, Aramco’s president and CEO, said in a released statement. “This reflects our commitment to introducing new supplies of clean-burning natural gas. These new supplies will help reduce domestic reliance on liquid fuels for power generation, enable increased liquids exports, provide feedstock to petrochemicals industries, and reduce carbon emissions.” 

Related Posts
Adnoc plans to award stakes in refining business in early 2019
Adnoc is evaluating bids received from companies looking to invest in its refineries unit Abu Dhabi National Oil Company (Adnoc) could make a decision about awarding stakes in its refining business ...
READ MORE
Producers renew upstream investment
Oil producers continue to focus on developing projects to increase production capacity, while the gas sector is set to benefit from the move away from coal and oil Global demand for ...
READ MORE
Oil storage
Gulf states are planning to spend $320bn in the oil and gas sector, according to Suhail Mohamed al-Mazrouei, the UAE’s Minister of Energy & Industry and the current Opec Conference ...
READ MORE
UAE records pick-up in oil and gas contract awards
So far this year, the UAE has awarded $2.3bn-worth of engineering, procurement and construction (EPC) contracts for hydrocarbons projects, according to regional projects tracker MEED Projects. This is already marginally above ...
READ MORE
Adnoc
As oil production cuts boost confidence in the energy sector, Abu Dhabi National Oil Company (Adnoc) is pushing ahead with bullish plans to expand its refining capabilities, add value to ...
READ MORE
BRIEFING PAPER: Uncharted Territories
Regional producers reel from the economic impact of Covid-19 as global oil demand takes the slow path to stabilisation As battered economies in the Middle East and North Africa (Mena) region climb the slippery slope ...
READ MORE
Covid-19 will shape future business in the region
The IMF predicts a strong rebound in global GDP growth in 2021, but the effects of the Covid-19 pandemic will torment the Middle East market for years to come Click here ...
READ MORE
Oman plans LNG capacity expansion
Plans include expanding the liquefaction capacity of the Qalhat plant Oman plans to extend the lifespan of its liquefied natural gas (LNG) facilities and raise production capacity by 10 per cent ...
READ MORE
BRIEFING PAPER: The Quest for Gas
Natural gas production maintains steady incline Middle East producers are boosting natural gas output to meet rising energy demand About $33.5bn-worth of gas exploration and production projects are under execution across the ...
READ MORE
Weakest spending recorded on Middle East oil and gas projects
Contract awards in 12 months to June 2017 down 58 per cent from year-earlier period Project setbacks and drop off in new schemes emerging after oil price drop has ...
READ MORE
Adnoc plans to award stakes in refining business
Producers renew upstream investment
Gulf states to spend $320bn in the oil
UAE records pick-up in oil and gas contract
Adnoc eyes diversified growth
BRIEFING PAPER: Uncharted Territories
Covid-19 will shape future business in the region
Oman plans LNG capacity expansion
BRIEFING PAPER: The Quest for Gas
Weakest spending recorded on Middle East oil and
14 November, 2017 | .By ANDREW ROSCOE