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McDermott confirms $4.5bn Aramco Marjan deals

US player confirms award of two major contracts for huge incremental development project off Saudi Arabia

McDermott International has confirmed the award from Saudi Aramco of a pair of huge deals for the state giant's Marjan incremental development project off Saudi Arabia.

The two engineering, procurement, construction and installation contracts are together worth over $4.5 billion and form part of the plethora of deals Aramco revealed on Tuesday it had awarded for both the Marjan and Berri incremental development projects.

McDermott's Wednesday confirmation comes after Upstream reported last month that the Houston-based player had landed both packages one and four for Marjan, with Upstream reporting at the time that the contracts were together thought to be worth in excess of $4 billion.

McDermott lands two Marjan packages from Saudi Aramco

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Package one is the more lucrative, worth more than $3 billion. It involves the provision of a gas-oil separation plant (GOSP) and in total the fabrication of 150,000 tonnes of facilities, including six major topsides platforms and jackets.

McDermott teamed up with China's Offshore Oil Engineering Company (COOEC) for package one, with the US player taking the lead role in the contract.

Package one also includes 12 bridges, six bridge support platforms and jackets, more than 70 kilometres of 36-inch oil export trunkline and more than 90 kilometres of 230kV composite subsea cables.

The EPCI contract for package four entails the offshore gas facilities and pipelines and is worth in excess of $1.5 billion to McDermott.

Aramco in $18bn Marjan and Berri awards

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Package four also involves four tie-in platforms and seven wellhead platforms, all with a combined weight of 55,700 tonnes.

McDermott will also be in charge of installation of more than 540 kilometres of subsea trunklines and more than 90 kilometres of subsea cable.

Engineering work for both packages will begin in the third quarter this year, with fabrication to start in the first quarter next year and overall completion seen in the fourth quarter of 2022.

For package one, project management and engineering teams will be located in McDermott's Kuala Lumpur base, close to its Batam Island fabrication facility in Indonesia and also to COOEC's facility in China.

For package four, project management will be done out of McDermott's Dubai office, with engineering support from its facilities in Al Khobar and Chennai. Fabrication will take place in Jebel Ali, Batam and Dammam.

Aramco awards package two deal for Marjan

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McDermott's senior vice president, Middle East & North Africa, Linh Austin, said: "The award of Marjan package four, in addition to Marjan package one, is further evidence of Aramco's confidence in McDermott's ability to deliver on a project of this scale.

"Our locally focused and globally-integrated approach we refer to as the One McDermott Way, is integral to our ability to provide effective, innovative solutions for our clients."

The package one award is the single-largest offshore contract awarded by Aramco, with package four the second-largest for Marjan.

On Tuesday, Aramco unveiled deals worth a total of $18 billion for 16 companies relating to both the Marjan and Berri projects.

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.

Aramco eyes trio for five Marjan onshore awards

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At Marjan, Aramco is adding 24 offshore oil, gas and water injection platforms, a new offshore GOSP, 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.

McDermott wins Saudi Aramco award

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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.

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

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