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Aramco eyes trio for five Marjan onshore awards

Saipem, Hyundai E&C and Tecnicas Reunidas on course to land contracts for onshore incremental development project

Saudi Aramco is understood to have lined up contract awards for five substantial onshore packages covering work on its Marjan incremental development project, with the projects thought to be together worth more than $6 billion.

Multiple sources told Upstream that Aramco recently placed a letters of intent with three leading international contractors for the work.

The three contractors are Italy’s Saipem, Spain’s Tecnicas Reunidas and South Korean giant Hyundai Engineering & Construction, sources said.

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A second source also confirmed the development and suggested that a formal signing is likely to take place in Saudi Arabia within days.

Saipem is believed to have landed Package 10, while Tecnicas Reunidas is understood to have won packages 9 and 11.

Hyundai Engineering & Construction is believed to have been awarded packages 6 and 12, added sources.

The five onshore packages awarded — 6, 9, 10, 11 and 12 — together make up the oil and gas surface facilities required for the Marjan development.

Package 6 involves a new oil processing train, a gas compression train, crude storage and associated infrastructure to handle an additional 300,000 barrels per day of crude.

Packages 9, 10, 11 and 12 are said to include gas facilities.

Of these, Package 9 is said to be key, calling for a new onshore plant and including work on inlet, storage and compression facilities.

Package 10 includes gas treatment and sulphur recovery facilities while Package 11 involves recovery and fractionation facilities and Package 12 covers utilities and flare facilities.

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In addition to the Marjan onshore package winners, UK-listed Petrofac, India's Larsen & Toubro and a consortium comprising UK-based TechnipFMC and South Korea's Samsung were also understood to be among the onshore bidders, but are understood to have lost out.

The new Marjan onshore facilities involve the expansion of the existing gas and oil separation plant at Tanjib and the construction of a new onshore gas plant, 260 kilometres north of Dhahran.

The new Tanjib gas plant will be able to process 2.79 billion cubic feet per day of gas and 85,000 bpd of condensate from the Marjan, Safaniyah and Zuluf offshore fields, sources said.

Along with the onshore packages, Aramco is understood to have awarded US giant McDermott two major offshore packages — 1 and 4 — as part of the Marjan incremental project, together valued upwards of $4 billion.

The state-owned giant is also expected to award within days Marjan offshore Package 2, with L&T and Saipem thought to be battling it out for the $1 billion prize.

Saipem is understood to have landed Marjan Package 3 earlier this year, as a part of Aramco's long-term agreement arrangement with offshore contractors.

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