Aramco signs contracts totalling US$4.5 billion for megaprojects

Saudi Aramco has signed agreements with several international oil and gas service contractors for oil and gas megaprojects as part of its Saudi Vision 2030 which are valued at a combined US$4.5 billion. The agreements are designed to enhance the company’s energy sustainability, diversify Saudi Arabia’s economy, expand gas production, and localise domestic content, Aramco said.


Eight agreements were signed, including three with Madrid-based Tecnicas Reunidas under Aramco’s gas compression program in its Southern Area operations. The project will bring an additional one bscfd of gas production from Haradh and Hawiyah fields over the next 20 years.


Supplementing the production increases, the Hawiyah gas plant expansion project will provide additional facilities to process raw sweet gas. The contract will be awarded to the Italian firm Snamprogetti SpA, a unit of Saipem SpA.


Other agreements cover the free flow pipeline contract for Haradh and Hawiyah with China Petroleum Pipelines Company, engineering and project management services for the Zuluf field development program with Jacobs Engineering Inc, the pipeline and trunkline project of Safaniya field with Abu Dhabi-based National Petroleum Construction Company (NPCC), and the slipover platforms and electrical distribution platform project at Safaniya field with McDermott Middle East.


Details on the projects are as follows:


  • North, South, and Satellite gas compression plants. The programme in the Southern Area will improve and sustain gas production from Haradh and Hawiyah fields by reducing choke pressure at the wellhead to 300 psig. As a result, plateau life will be extended at the same production rates for both fields for the next 20 years. The programme scope includes installing gas compression facilities, liquid separation stations, and transmission lines to the Haradh and Hawiyah gas plant along with expanding the existing gas gathering pipeline network. Engineering and procurement services will be carried out from Tecnicas Reunidas’s headquarters in Madrid.


  • Hawiyah gas plant expansion. The expansion project will provide additional facilities to process 1.07 bscfd of raw sweet gas. The scope mainly includes inlet facilities, two gas treatment trains, dehydration and dew point control facilities, two sales gas compression units, high- and low-pressure flare and flare recovery systems, a steam turbine generation unit, expansion of electrical and nonelectrical utilities, and four industrial support buildings. The gas processing facilities will be on-stream by June 2021. Once completed, the project will increase total production at the plant to 3.86 bscfd and make it one of the largest gas processing facilities in the world, Aramco said.


  • Free flow pipeline project. The free flow pipelines packages allow for an early start of the Haradh gas increment programme. It calls for installing a 450-kilometre pipeline network by early 2019 to allow for free flowing 290 MMscfd of gas from Haradh field to the Hawiyah gas plant to ensure sustained gas production from Haradh and Hawiyah fields until the completion of the compression plants. The contract scope has been awarded to China Petroleum Pipelines on a lump-sum procure-build basis.


  • Engineering and project management services for Zuluf field development programme. The Zuluf programme will provide facilities to process 600 million b/d of Arab heavy crude oil from Zuluf field in the Persian Gulf. The scope of work includes water injection and oil wellhead platforms, tie-in platforms, trunklines, and flowlines in addition to 600 million-b/d in onshore central processing facilities which will contain a gas-oil separation plant, gas compression facilities, and water injection plants. Stabilised crude will be transported to the Ju’aymah terminal via downstream pipelines, and the separated gas and condensate streams will be transported to the proposed Tanajib gas plant via pipelines. The contract for engineering and project management services will be awarded to Jacobs.


  • TP-21 and trunklines 14 and 15 at Safaniya field. The project provides for the engineering, procurement, construction, and installation (EPCI) of one tie-in platform (TP-21) – jacket and deck – to serve as an additional gathering hub for future oil wellhead platforms at Safaniya field in the Persian Gulf. It will provide an additional power supply for the field via 20 kilometres of subsea cable. The project also will install a concrete weight coated trunkline and 14 pipelines between TP-21 and the onshore Safaniya GOSP-1. NPCC will execute the 2-year work under the guidance of Aramco’s offshore project department.


  • Slipover platforms and electrical distribution platform at Safaniya field. The project, designed to enhance crude production at Safaniya field, provides for EPCI of ten slipover platforms at South Safaniya field. An electrical distribution platform will be installed, serving as an offshore power substation and supplying ten slipover platforms with electricity to power their electrical submersible pumps. McDermott Middle East will execute the three-year project under the guidance of Aramco’s offshore project department.


Aramco in May announced some US$50 billion in contracts with various US firms to pave the way for the state-run firm to “enhance its business synergy with the US as well as attract investments from its US counterparts to the kingdom.” Among the deals signed were those with Jacobs and McDermott.


Separately, in July, Aramco let a contract to Saipem for EPCI as well as trunklines and installation works in Saudi Arabia under a long-term agreement.


The state-owned firm also recently launched operations alongside Rowan Companies Plc from their ARO Drilling combine.