Page 4 - MEOG Week 28

MEOG CoMMentary MEOG
Aramco confirms recent Berri and Marjan awards
The Saudi rm has awarded deals worth $18bn for work on the build-out of the two massive offshore oil elds as part of wider efforts to expand production capacity
saudi
What:
$18bn worth of deals have been awarded for onshore and offshore eld development as Aramco seeks to raise production capacity signi cantly as other assets mature.
Why:
The company is looking for ways to take the strain off its largest producing elds like Ghawar, where output capacity has dropped to 3.8mn bpd.
What next:
Further development of Berri and Marjan is slated to increase capacity by around 550,000 bpd of oil, 25.8bn cubic metres of gas and 360,000 bpd of NGLs.
StAte-owned Saudi Aramco last week announced the award of contracts worth $18bn to 16 companies for the further development of the o shore Berri and Marjan elds a er inviting more than 90 rms to bid.
the expansion projects are anticipated to raise capacity at the assets by 300,000 barrels per day and 250,000 bpd respectively, as well as a total of 2.5bn cubic feet (bcf, 70.8mn cubic metres) per day of gas and 360,000 bpd of natural gas liquids (nGLs).
Some of the larger packages on the multi-bil- lion dollar developments were opened to the company’s wider so-called “general bid slate”, but others have been reserved for the LtA rms.
Aramco’s o cial press release did not include the names of those awarded contracts, though recent announcements by the awardees pro- vided further details, outlining engineering procurement and construction and installation (ePCI) in the onshore and o shore.
while the rm noted that half of the contracts had been granted to local Saudi companies, the bene ts of being a signatory of the state rm’s long-term agreements (LtAs) were highlighted, with US-based Mcdermott, Italy’s Saipem, India’s Larsen & toubro (L&t), oslo-listed Sub- sea 7 and China’s o shore oil engineering Co. (CooeC) all awarded deals. Contracts were also handed to Spain’s tecnicas Reunidas (tR) and South Korean rm Hyundai engineering & Construction for work onshore.
After a lengthy bidding process, CooeC, UAe-based Lamprell with Boskalis of the netherlands, Malaysia’s Sapura energy, and
UK-based technipFMC with Malaysia Marine & Heavy engineering were brought into Aram- co’s LtA stable in december 2018.
the existing signatories were dynamic Industries and Mcdermott, both of the US, L&t with Subsea 7, Abu dhabi state-backed national Petroleum Construction Co. (nnPC) and Saipem.
Marjan
Aramco’s development programme for Marjan includes 24 o shore oil, gas and water injection platforms and a new o shore gas oil separation plant. onshore, oil facilities at tanajib will be expanded as well as the addition of a plant to treat and process gas, nGL recovery and frac- tionation, and gas compression facilities.
Marjan has estimated remaining reserves of around 17bn barrels of oil equivalent (boe).
A team of Mcdermott and CooeC won the $3bn ePCI deal for package 1, with the Ameri- can rm adding a $1.5bn deal for package 4 in its own right.
Package 1 covers the planned new gas-oil sep- aration platform (GoSP) complex, which will have capacity to handle 475,000 bpd of crude, 813,000 bpd of nGLs and around 7.7bn cubic metres per year of gas. e complex will include production, tie-in, accommodation, gas com- pression and are platforms, as well as pipelines and cabling.
Meanwhile, package 4 includes three new tie-in platforms and seven wellhead platforms and the installation of 540 km of subsea trunk lines and in-field pipelines and the laying of
P4
w w w . N E W S B A S E . c o m Week 28 16•July•2019