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Saudi Aramco awards $18bn EPC contracts for Marjan, Berri oil fields

50% of the 34 contracts awarded for increment programmes at Marjan and Berri have gone to 'high-caliber' Saudi Arabian firms

Saudi Aramco has awarded contracts for Marjan and Berri.
Oil & Gas Middle East
Saudi Aramco has awarded contracts for Marjan and Berri.

Saudi Arabian state-owned oil giant and the world's largest oil company, Saudi Aramco, has awarded 34 contracts worth $18bn (SAR67.5bn) for the engineering, procurement, and construction (EPC) requirements of its Marjan and Berri oil field incrememnt programmes, which will create thousands of jobs in Saudi Arabia and see production capacity rased by 550,000 barrels per day (bpd) of Arabian Crude Oil and 2.5 billion standard cubic feet a day (BSCFD) of gas, with 50% of the deals awarded to home-grown companies as part of Aramco's In-Kingtom Total Value Add (Iktva) programme to boost localisation. 

In a statement, Aramco said more than 90 companies and institutions were invited to bid on the packages, with 16 Saudi and international companies picked for EPC and supply works. 

Aramco said the Saudi Arabian construction companies it had picked for the projects were "high-caliber firms that have proven their ability to handle complex projects". 

Iktva is focused on raising Aramco's stock of locally sourced goods and services to 70% by 2021. 

The Marjan increment programme covers oil, associated gas, non-associated gas, and cap gas from the Marjan offshore field, and will see the development of an offshore gas oil separation plant, as well as 24 offshore oil, gas, and water injection platforms. 

Aramco also plans to expand its Tanajib onshore oil facilities and construct a new gas plant to include gas treatment and processing, natural gas liquids (NGL) recovery and fractionation, and gas compression facilities.

A cogeneration facility will be developed, in addition to a water desalination facility and new transfer pipelines.

The offshore oilfield development project aims to increase the Marjan Field production by 300 thousand barrels of oil per calendar year (MBCD) of Arabian Medium Crude Oil, process 2.5 BSCFD of gas, and produce an additional 360 MBCD of C2+NGL.

Meanwhile, the completion of Berri increment programme's planned facilities will see the addition of a gas oil separation plant at Abu Ali Island, with the capacity to process 500,000 bpd of Arabian Light Crude Oil, in addition to gas processing facilities that will process 40,000 barrels of associated hydrocarbon condensate at the Khursaniyah gas plant. 

Berri's expansion also includes the development of a water injection facility, two drilling islands, 11 oil and water offshore platforms, and nine onshore oil production and water supply drill sites. 

Commenting on the contracts, Saudi Aramco's president and chief executive officer, Amin H Nasser, said: “These two programs will significantly enhance Saudi Aramco’s oil production and gas processing capabilities, both strengthening our position as the leading integrated energy supplier and meeting growing long-term demand for petroleum. 

“These investments will support our continued focus on employing best-in-class technologies, well completion, and reservoir management practices.

"It will enable Saudi Aramco to further reduce the carbon intensity of our crude oils, supporting our strategy of reducing emissions while providing energy to those who need it.”

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Construction Week - Issue 746
Jul 20, 2019