Page 5 - MEOG Week 28

MEOG CoMMentary MEOG Location of Saudi
more 90 km of subsea cables.
Middle East Oil & Gas (MEOG) understands
that the US/Chinese consortium defeated bids from teams of L&t with nPCC, and Saipem with Hyundai.
Saipem did, however, win a gas treatment and sulphur recovery contract for Marjan as well as another deal for expanding oil and gas facilities at Berri, worth a combined total of $3.5bn. e former will see the Italian company build facili- ties that will recovery “more than 99.99% of the gases”. Meanwhile, Upstream reported last week that L&t and Subsea 7 had won package 2 on the Marjan incremental development project, covering oil facilities, three tie-in platforms, nine wellhead oil platforms, 200 km of subsea pipelines and 150 km of subsea cables. neither of the contractors nor Aramco have con rmed the award.
on July 11, Hyundai con rmed the receipt of Aramco’s $2.7bn deal for Marjan packages 6 and 12, with the deals covering the expansion of an existing GoSP and the construction of a facility for an o shore gas processing plant.
e contract awarded to tR was reported by to have been for packages 9 and 11, though again, the Spanish rm has not made any public statements.
Berri
Aramco’s Berri increment programme includes a new 500,000 bpd gas oil separation plant in Abu Ali Island and additional gas processing facilities at the Khursaniyah gas plant to handle 40,000 bpd of associated condensate, with Berri thought to be home to more than 8bn boe.
It will also a new water injection facility, two drilling islands, 11 oil and water o shore plat- forms and nine onshore oil production and water supply drill sites to achieve the 250,000 bpd output rise.
According to the Italian company, last week’s Berri contract “concerns the expansion, through
the installation of new process units, of the Abu Ali oil-gas separation plant [...] and of the gas treatment plant of Khursaniyah”.
Saipem won a $1.3bn contract in January for 10 production deck modules (PdMs) and mul- tiple pipelines under the programme. e L&t/ Subsea 7 team also won two ePCI deals worth a total of several hundred million dollars at the same time, one covering three PdMs at Zuluf and one encompassing several sections of pipe- line at Berri.
Wider expansion
Aramco has launched three major projects over the past two years, at Berri, Marjan and Zuluf, designed instead to expand output by a total of 1.15mn bpd.
e third expansion scheme to raise produc- tion at Zuluf by around 600,000 bpd is expected to enter the contracting stage this year pend- ing completion of the Feed by the US’ Jacobs engineering.
the new LtA signatories also narrowly missed inclusion in the tender for the eighth phase of redevelopment at Safaniya, oated early in Q4 and encompassing six slipover platforms, observation decks and pipelines. Bids were due to have been submitted in december.
despite Mcdermott’s historic dominance at the estimated 37bn barrel eld, which requires constant costly maintenance to sustain produc- tion of around 1.2mn-1.3mn bpd, recent phases have also been won by Saipem and, hearteningly for the newcomers, by newcomer nPCC.
e announcement of the recent deals and of the next round of tendering for the Jafurah gas terminal illustrate Aramco’s clear intention to ramp up production capabilities as other assets mature, particularly in light of the rm’s acknowledgement that maximum sustainable capacity (MSC) from Ghawar, the world’s larg- est eld, has now fallen from around 5.5mn bpd to 3.8mn bpd.™
Arabian oil elds.
Image source: Saudi Aramco
Week 28 16•July•2019 w w w . N E W S B A S E . c o m
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