Home / NEWS / Saudi Aramco inks eight agreements worth nearly $4.5bn

Saudi Aramco inks eight agreements worth nearly $4.5bn

by Fatima De La Cerna on Nov 12, 2017

Saudi Aramco has awarded eight contracts worth almost $4.5bn [representational image].
Saudi Aramco has awarded eight contracts worth almost $4.5bn [representational image].

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Saudi Aramco has announced that it has signed eight agreements, with a total value of nearly $4.5bn, with several oil and gas service contractors.

The oil giant revealed in a statement that three contracts for a gas compression programme were awarded on a lump sum turnkey (LSTK) basis to Madrid-based Técnicas Reunidas.

The programme scope includes the installation of gas compression facilities, liquid separation stations, and transmission lines in the Haradh and Hawiyah gas plants, as well as the expansion of the existing gas gathering pipeline network.

According to Aramco, the programme is expected to improve and sustain gas production in the Haradh and Hawiyah fields for the next 20 years by bringing an additional one billion standard cubic feet per day (scfd).

Read: Saudi Aramco opens construction relations centre

Italian firm, Saipem, won the contract for Aramco’s Hawiyah Gas Plant (HGP) expansion project, which will see additional gas-processing plants implemented to allow for the processing of raw sweet gas.

Aramco noted that the scope of the contract includes inlet facilities, two new gas-treatment trains, dehydration and dew point control facilities, two sales gas compression units, high- and low-pressure flare and flare recovery systems, and a steam turbine generation unit, in addition to the expansion of electrical and non-electrical utilities and the construction of four new industrial support buildings.

Meanwhile, Abu Dhabi-based National Petroleum Construction Company (NPCC), scooped an engineering, procurement, and construction (EPC) contract valued at $326.7m (SAR1.2bn) for an Aramco pipeline and trunkline project involving Safaniyah Field.

Under the terms of the contract, NPCC will construct a dual pipeline to carry the produced crude from the platform to the gas separation plant, with a captive 20km sea cable to provide additional power supply, UAE state news agency, WAM, reported.

The oil company also signed a free flow pipeline contract, based on a lump sum procure build (LSPB) basis, for Haradh and Hawiyah with China Petroleum Pipeline (CPP); an engineering and project management services deal for the Zuluf Field development programme with Jacobs Engineering; and an engineering, procurement, construction, and installation (EPCI) deal with McDermott Middle East for its slipover platforms and electrical distribution platform project in Safaniyah Field.

Amin Nasser, Saudi Aramco president and chief executive officer, said: “These agreements we signed are part of our natural gas expansion, as we add about 1 billion standard cubic feet per day (scfd).

“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 petrochemical industries, and reduce carbon emissions.”

He added: “Investments like these help secure Saudi Aramco’s preeminent position as a reliable supplier of energy domestically and to the world. They also reflect our concerted effort, as stated in Saudi Vision 2030, to diversify our economy, promote local manufacturing, support a sustainable environment, and strengthen our business and investment climate with the domestic private sector through fruitful international partnerships.”