Saudi Aramco signs deals worth $4.5bn

Saudi Aramco has signed eight agreements worth a total of $4.5bn with several oil and gas service companies for a number of major projects.

Three of the signed deals were with Spain’s Tecnicas Reunidas for work involving Aramco’s gas compression programme in the Southern Area. The scheme will improve and sustain gas production from the Haradh and Hawiyah fields for the next 20 years by boosting production by 1 billion cubic feet a day (cf/d). Tecnicas Reunidas will be awarded the contracts on a lump-sum turnkey (LSTK) basis.

Italy’s Saipem will be awarded an LSTK deal to build the Hawiyah gas plant expansion, which will provide additional gas processing facilities to process raw sweet gas. The expansion will add an additional 1,070 million cf/d of raw sweet gas to meet the kingdom’s growing energy demand. The scope of works will include installing inlet facilities, two new gas treatment trains, dehydration and dew point control facilities, two sales gas compression units, a steam turbine generation unit and an expansion of electrical and non-electrical utilities.

Once completed, the Hawiyah plant will have a total production capacity of 3,860 million cf/d, making it one of the largest gas processing facilities in the world.

Under another agreement signed for Haradh and Hawiyah, China Petroleum Pipelines Company (CPPC) signed an agreement for developing a free flow pipeline contract. Under the package, CPPC will install 450 kilometres of pipeline by early 2019 to allow the flow of 290 million cf/d of gas from the Haradh field to the Hawiyah gas plant. The contract has been awarded on a lump-sum, procedure, build (LSPB) model.

The US’ Jacobs Engineering signed an engineering and project management services deal for the Zuluf field development programme. This will provide facilities to process 600 million barrels a day (b/d) of Arabian heavy crude from the Zuluf offshore field. The scope of works for the scheme includes water injection and oil wellhead platforms, tie-in platforms, trunk lines and flowlines, in addition to onshore central processing facilities.

Abu Dhabi’s National Petroleum Construction Company (NPCC) signed an agreement to develop the pipeline and trunk line scheme for the Safaniyah field, with the US’ McDermott inking a contract for a slip-over platforms and electrical distribution platform contract also in the Safaniyah field.

“These agreements we signed are part of our natural gas expansion, as we add about 1 billion [cf/d],” Amin Nasser, Aramco’s president and CEO, said in a released statement. “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 petrochemicals industries, and reduce carbon emissions.” 

Related Posts
Adnoc
As oil production cuts boost confidence in the energy sector, Abu Dhabi National Oil Company (Adnoc) is pushing ahead with bullish plans to expand its refining capabilities, add value to ...
READ MORE
Energy industry prepares to tackle life after peak oil
The timing of peak oil demand will be significant for oil producers in the Mena region as it will require stakeholders to transform their operations The world currently consumes about 99 ...
READ MORE
China ramps up investment in Middle East power
China investment makes up an increasing proportion of the financial support for the largest projects in the region’s power sector The financial close of the $4.4bn fourth phase of Dubai’s Mohammed ...
READ MORE
Ten Minutes into the Future of Energy
UAE Minister of Energy and Industry, Suhail al Mazrouei   The ‘Ten minutes into the Future of Energy’ initiative, produced by MEED and powered by Mashreq, aims to explain and highlight the ...
READ MORE
Adnoc and ExxonMobil sign R&D agreement
The two energy companies will explore joint technology research and development (R&D) partnership opportunities across the oil and gas upstream value chain Abu Dhabi National Oil Company (Adnoc) has signed a ...
READ MORE
EXCLUSIVE: Bidders submit in-country value plans for UAE gas project
Adnoc’s second IGD expansion project is estimated to be worth more than $1bn Bidders on Adnoc LNG’s second integrated gas development expansion project (IGD E2) have submitted In-Country Value (ICV) Improvement ...
READ MORE
Bahrain holds on to energy revival hopes
Alongside existing strategic oil projects, the discovery of a giant offshore reserve at Khalij al-Bahrain has livened up Manama’s energy prospects When Bahrain’s Oil Minister Sheikh Mohammed bin Khalifa al-Khalifa announced ...
READ MORE
Adnoc and Total sign decarbonisation agreement
The two energy majors will jointly explore opportunities to reduce CO2 emissions, improve energy efficiency, and use renewable energy for oil and gas operations Abu Dhabi National Oil Company (Adnoc) has ...
READ MORE
Saudi Aramco tightens capital expenditure
Aramco’s supply chain community is trying to assess the impact of subdued capital spending in 2020 on their businesses Most analysts had predicted Saudi Aramco would register lower profits in 2019 than the ...
READ MORE
In-country value could positively transform construction in the UAE
Localisation will create barriers to entry and move the market away from awarding work to lowest priced bidders Abu Dhabi’s move to introduce the in-country value (ICV) programme into sectors outside ...
READ MORE
Adnoc eyes diversified growth
Energy industry prepares to tackle life after peak
China ramps up investment in Middle East power
Ten Minutes into the Future of Energy
Adnoc and ExxonMobil sign R&D agreement
EXCLUSIVE: Bidders submit in-country value plans for UAE
Bahrain holds on to energy revival hopes
Adnoc and Total sign decarbonisation agreement
Saudi Aramco tightens capital expenditure
In-country value could positively transform construction in the
14 November, 2017 | .By ANDREW ROSCOE