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Subsea 7, India's L&T win Saudi Aramco contracts for Zuluf, Berri

British-Indian consortium to deliver oil production deck manifolds and subsea pipelines through two EPCI contracts from oil giant

Saudi Aramco has awarded a contract each for Zuluf and Berri [representational image].
ITP / Shutterstock
Saudi Aramco has awarded a contract each for Zuluf and Berri [representational image].

Luxembourg-registered and London-headquartered engineering services company Subsea 7 has been awarded two engineering, procurement, construction, and installation (EPCI) contracts, alongside India’s Bombay bourse-listed Larsen & Toubro (L&T), to work at oil giant Saudi Aramco’s Zuluf and Berri oil fields.

Under the EPCI contracts, the British-Indian consortium will deliver conventional project work in the shallow water offshore field for the kingdom’s oil company.

L&T Hydrocarbon Engineering, a subsidiary of L&T, is working with Subsea 7 on the projects.

The deals come as part of Saudi Aramco’s long-term agreement (LTA) programme, and will see the delivery of three oil production deck manifolds, and subsea pipelines in the Zuluf field.

Simultaneously, the consortium will deliver subsea pipelines for Aramco’s Berri oil field. Offshore execution is expected to begin in 2020, Subsea 7 said in a statement.

Commenting on the contracts, Subsea 7’s vice president for the Middle East, David Lowther, said the awards demonstrated the company’s track record in Saudi Arabia.

“Our assets are well suited to deliver this type of work,” he added.

The announcement of Subsea 7 and L&T’s contracts comes weeks after Saudi Aramco acquired a 70% stake in Sabic from the Crown Prince HRH Mohammed Bin Salman-led Public Investment Fund in a transaction valued at $69.1bn (SAR259.1bn).

According to ProTenders data as of September 2018, the onshore and offshore Berri oil field is located north of Ras Tanura, and has an output of up to 300,000 barrels per day (bpd).

Various developments are under way at Berri, where production deck modeuls, subsea pipelines, tie-in platforms, offshore jackets, gas plants, and gas-oil separation facilities are planned to be built or expanded. $6BN BERRI OILFIELD INCREMENT PROGRAMME DETAILS HERE

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Construction Week - Issue 749
Sep 15, 2019