Page 13 - MEOG Week 39 2021

MEOG TENDERS MEOG

McDermott looking good

for Aramco LTA work

SAUDI ARABIA US-BASED engineering firm McDermott is The field produces 550,000-600,000 bpd of
understood to be leading the race among pre- Arabian Medium crude at present from both
qualified bidders for several offshore oilfield ser- onshore and offshore facilities.
vices contracts from Saudi Aramco. Once on stream, the Zuluf expansion will
Speaking to Upstream this week, sources contribute more than half of the planned 1mn
close to proceedings said that McDermott is bpd capacity increase mandated by the King-
the likely winner among the pool of signatories dom’s Ministry of Energy last year. This will see
to Aramco’s so-called long-term agreements Aramco’s maximum sustainable capacity (MSC)
(LTAs) for three contracts covering the Abu rise to 13mn bpd.
Sa’fah, Ribyan, Safaniyah and Zuluf oilfields. The Zuluf was one of 10 fields that exceeded MSC
deals, contract release purchase orders (CRPOs) during the oil price war with Russia a year ago,
73, 74 and 84, are understood to be valued at a allowing total Saudi production to set a sin-
combined total of more than $500mn. gle-day oil production record of 12.1mn bpd in
The sources said that the first of these related April.
to engineering, procurement and construction Other fields that produced above MSC
(EPC) work for four rig jackets for the fields, with included Berri, Marjan and Safaniyah. Aramco
CRPO 74 relating to Abu Sa’fah and Safainyah does include in MSC its 50% share of the roughly
and CRPO 84 Ribyan and Zuluf. 310,000 bpd from Abu Sa’fah which it shares
The latter two contracts relate to EPC work with Bahrain.
for oil production deck modules and subsea Engineering design and procurement also
pipelines. began belatedly at Berri and Marjan, with the
The LTA pool is comprised of Dynamic projects anticipated raising production capacity
Industries and McDermott, both of the US; L&T by 250,000 bpd and 300,000 bpd respectively by
with Subsea 7; Abu Dhabi state-backed National 2025.
Petroleum Construction Co. (NNPC); Italy’s McDermott recently signed a memorandum
Saipem; China Offshore Oil Engineering Co. of understanding (MoU) with Aramco under the
(COOEC); UAE-based Lamprell with Boskalis Saudi firm’s Namaat Programme to investigate
of the Netherlands; Malaysia’s Sapura Energy; opportunities for onshore modular construction
UK-based TechnipFMC with Malaysia Marine at the US firm’s Saudi Arabia Fabrication In Ras
& Heavy Engineering and South Korea’s Hyun- Al-Khair (SAFIRA) fabrication yard, part of the
dai Heavy Industries. King Salman International Complex for Mari-
Aramco have launched several tenders for time Industries and Services.
the delayed Zuluf crude increment programme Such support for Aramco’s in-kingdom
earlier this year, with the project expected to add total value add (iktva) efforts is likely to be seen
600,000 barrels per day of Arabian Heavy capac- favourably in Dhahran and will strengthen rela-
ity by 2026. tions between the companies.™

Week 39 29•September•2021 www. NEWSBASE .com P13