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CW In Focus| Saudi Aramco's $18bn Marjan, Berri contracts

Home-grown companies bagged 50% deals as part of In-Kingtom Total Value Add programme

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 increment programmes.

The project is set to create thousands of job opportunities in the Kingdom and simultaneously aims at raising the production capacity of these oil fields.

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.

Over 50% of the deals are said to be awarded to home-grown companies as part of Aramco's In-Kingdom Total Value Add (Iktva) programme to boost localisation.

The project, will see production capacity raised by 550,000 barrels per day of Arabian Crude Oil and 2.5 billion standard cubic feet a day of gas.

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

In-Kingtom Total Value Add programme 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 of Arabian Medium Crude Oil, process 2.5 5 billion standard cubic feet a day of gas, and produce an additional 360 Thousand Barrels of Oil per Calendar Day of ethane plus natural gas liquids.

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 barrels per day pd 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 that the two programs will significantly enhance Saudi Aramco’s oil production and gas processing capabilities, both strengthening the oil giant’s position as the leading integrated energy supplier and meeting growing long-term demand for petroleum.

Following the contract awards, American contractor, Mcdermott revealed that it had won two engineering, procurement, construction, and installation contracts with a combined value of $4.5bn (SAR16.8bn) for Packages 1 and 4 of Aramco Marjan Increment Development.

While, Italian contractor Saipem was awarded two onshore engineering and construction contracts valued at $3.5bn (SAR13.5bn) for Marjan and Berri gas fields.

South Korea-headquartered Hyundai Engineering and Construction also bagged $2.7bn (SAR10.1bn) contracts for Packages 6 and 12 of Marjan Development Programme.

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