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Aramco in $18bn Marjan and Berri awards

Saudi giant confirms plethora of deals for incremental development projects

Saudi Aramco has confirmed dozens of deals together valued at $18 billion for work on incremental development projects at the Marjan and Berri oilfields off Saudi Arabia.

The engineering, procurement and construction contracts, many of which Upstream has already reported, have been dished out to a total of 16 companies, including domestic and international players.

Aramco awards package two deal for Marjan

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Together the Berri and Marjan incremental projects aim to add 550,000 barrels per day of crude production and 2.5 billion cubic feet per day of gas production at Saudi Aramco.

At Marjan, Aramco is adding 24 offshore oil, gas and water injection platforms, a new offshore gas oil separation plant, expanding the Tanajib onshore oil facilities, and constructing a new gas plant to include gas treatment and processing, NGL recovery and fractionation, and gas compression facilities.

It will also build a cogeneration facility and a water desalination facility and new transfer pipelines.

At Marjan, Aramco is aiming to boost crude production by 300,000 bpd and 2.5 Bcfd of gas as well as 360,000 bpd of natural gas liquids and C2.

For the Berri incremental development project, Aramco will add 11 oil and water offshore platforms, nine onshore oil production and water supply drill sites, a new gas oil separation plant on Abu Ali Island, gas processing facilities at the Khursaniyah gas plant (KGP), a new water injection facility and two islands.

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Aramco is aiming to increase production from Berri by 250,000 bpd of crude.

Upstream reported in late June that US giant McDermott International was awarded two major offshore packages from Aramco for work on the Marjan incremental development project, with the two contracts thought to be together worth more than $4 billion.

The Marjan packages one and four are understood to be the two largest offshore packages offered by the Saudi state-owned giant last year.

While McDermott has landed package one in a consortium with China’s Offshore Oil Engineering Company (COOEC) for package one, the US-based contractor won package four on its own, sources told Upstream.

The first offshore package, package one, includes work on an offshore gas-oil separation platform (GOSP) complex, a contract likely to be valued upwards of $3 billion.

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The GOSP facility is thought to be the single largest EPC offshore contract offered by the state-owned giant in recent years and is likely to involve about 100,000 tonnes of fabrication.

The new GOSP complex is being designed to handle 475,000 barrels per day of oil, 813,000 bpd of liquids and almost 750 million cubic feet per day of gas.

The facilities are likely to include a new accommodation platform, a tie-in platform, a gas compression platform, one production platform, an auxiliary platform, a flare platform, several kilometres of subsea pipelines and cables.

Package four, for which McDermott has been selected, comprises a gas cap production network that includes a tie-in platform and two gas cap production wellhead platforms and is expected to be worth upwards of $1 billion.

This week Upstream reported that Aramco had handed a consortium of two India's Larsen & Toubro and Oslo-listed Subsea 7 for the second offshore package involving its Marjan incremental development project.

McDermott lands two Marjan packages from Saudi Aramco

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Under the contract, package two includes oil facilities for the incremental development project, a three tie-in platforms, nine wellhead oil platforms, 200 kilometres of subsea pipelines across 21 segments and 150 kilometres of subsea cables across 15 segments.

Italy's Saipem confirmed on Tuesday, immediately after Aramco's statement, that it has won the deal for construction of a gas treatment unit and of another unit for the recovery of acid gases for sulfur production at Marjan.

The Marjan field lies in the Persian Gulf, about 85 kilometres northeast of the Tanajib onshore plant.

At Berri, last week Upstream reported that Aramco has awarded a letter of intent to Saipem for work on the expansion of its Abu Ali gas plant, with the project likely to be worth around $2 billion.

Saipem also confirmed this deal on Tuesday saying that the two deals it has won - one for Berri and one for Marjan - are together worth in excess of $3.5 billion.

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The workscope is thought to include the EPC of a new onshore GOSP at the existing Abu Ali gas plant facility.

The new GOSP is expected to have a handling capacity of about 250,000 barrels per day of crude.

In addition, the project’s workscope is likely to include additional processing facilities at KGP.

The new surface facilities envisaged at KGP are likely to process 40,000 bpd of condensate, one source said.

Canada’s SNC-Lavalin was awarded a key contract in 2017 by Aramco for engineering and project management services on the Berri incremental programme.

In late May, Upstream reported that Aramco handed out a $300 million-plus pipeline deal for work on its Berri oilfield, also to Saipem. Work involves the EPC and installation of 70 kilometres of onshore and 20 kilometres of offshore pipelines.

Saudi Aramco hands out Abu Ali gas plant work

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Aramco is spending heavily on its Marjan, Berri and Zuluf incremental programmes to boost oil and gas production from the ageing offshore fields.

The three incremental programmes are together valued upwards of $20 billion and involve multiple onshore as well as offshore packages.

The company said on Tuesday that, out of the 34 contracts offered, Saudi companies received 50% of the deals. In total, more than 90 companies and institutions were invited to bid on packages.

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