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Jacobs Engineering wins 'landmark' Saudi Aramco contract

Jacbos will project manage Saudi Arabia's Zulful development project to erect infrastructure to process 600,000 barrels of oil per day

Saudi Aramco awarded eight contracts worth $4.5bn last year.
Saudi Aramco awarded eight contracts worth $4.5bn last year.

US giant Jacobs Engineering Group has won a “landmark contract” from Saudi Aramco to project manage the Zuluf oil and gas megaproject.

Jacobs’ contract with Saudi Aramco includes supplying engineering and project management services. This includes onshore central processing works, as well as help with an oil and gas separation plant, gas compression facilitates, a water injection plant, and connecting pipelines.

The Zuluf field in Saudi Arabia is an is an oil and gas megaproject development that will see infrastructure built to process 600,000 barrels of crude oil per day from the Zuluf offshore field in the Arabian Gulf. 

READ: Saudi Aramco inks eight agreements worth nearly $4.5bn

Crude oil stablised offshore will be carried to the Juaymah terminal via newly-built downstream pipelines. Separated gas will be transported to the new Tanajib gas plant via a separate network of pipes.

"This landmark contract reaffirms our strong relationship with Saudi Aramco and our long-standing position in the Middle East," said Vinayak Pai, petroleum and chemicals president at Jacobs.

"The Zuluf field is one of the most significant developments of its kind and, through this project, we will support Saudi Vision 2030 by helping expand gas production and enhancing energy sustainability."

Developing the Zuluf field started in January 2018, with work executed from Calgary, Canada, and Al-Khobar, the Kingdom of Saudi Arabia.

Jacobs’ contract comes 10 months after the Texas-based business created a joint venture (JV) company with Saudi Aramco in May 2017. The new entity was set up to deliver construction management services to major infrastructure projects across the Middle East and North Africa. Jacobs chairman and chief executive officer, Steve Demetriou, said at the time that the JV would be an “effective economic catalyst” to support the Saudi Vision 2030 industrial strategy.

The contract awarded to Jacobs is one eight major oil and gas projects that Saudi Aramco signed in November 2017 collectively worth $4.5bn (AED16.5bn).

Separately, Saudi Aramco penned commercial deals worth over $10bn (AED36.7bn) with 14 US companies during the US-Saudi CEO forum that took place several days after US President Donald Trump met with Saudi Arabia’s HRH Prince Mohammed bin Salman bin Abdulaziz.

Trump said he had become “very good friends over a very short period of time” with the Saudi crown prince.

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Construction Week - Issue 754
Nov 23, 2019