Saudi Aramco awards raft of multibillion-dollar deals

Saudi giant signs up Japan’s JGC Group to build world’s largest NGL plant at Hawiyah

  • E-Mail
By  Eudore Chand Published  March 26, 2005

Saudi Arabia has awarded a raft of contracts worth billions of dollars for creating new capacities in its oil and gas sector. The contracts will add to the on-going infrastructure construction and real estate development boom in the kingdom. Fired by substantially increased incomes due to high world crude oil prices, and encouraged by the prospects of continuing high earnings, the kingdom’s oil giant, Saudi Aramco, has moved forward on two new massive projects, as well as other projects. Saudi Aramco has signed contracts with some of the world’s leading engineering and construction firms such as Snamprogetti, Bechtel and Technip, for the Khursaniyah Oil and Gas Programme and the Hawiyah Natural Gas Liquids (NGL) Recovery Programme. Saudi Aramco president and chief executive officer Abdullah S. Jum’ah congratulated the winning firms and the project teams, and emphasised that these contracts will help Saudi Aramco to deliver on its promise to continue securing energy for the nation and for the world, said SPA. “The oil facilities will reinforce the company’s international role in responding reliably to future oil market demand, while the gas programme demonstrates Saudi Aramco’s commitment to continue playing its part in the kingdom’s efforts to further grow and diversify the economy,” Jum’ah said. The new Khursaniyah Programme will develop oil and gas production facilities for the onshore Abu Hadriya, Fadhili and Khursaniyah oil fields near Jubail Industrial City in the Eastern Province. It will have the capacity to produce 500 000 barrels of crude oil per day by the end of 2007. The Hawiyah NGL Recovery Programme will produce an extra 310 000 barrels of ethane and NGL products daily through the Hawiyah NGL Plant near the Ghawar Field and an expansion of the Ju’aymah Gas Fractionation Plant, near Ras Tanura. Construction is scheduled for completion in early 2008. Italy’s Snamprogetti was chosen for the execution of the Khursaniyah Producing Facilities. The scope of work includes building a central gas-oil separation plant and wet crude handling facilities to process crude from the three fields, gas gathering compression facilities, a cogeneration plant, crude stabilisation and water injection. A consortium of Bechtel Overseas and Technip from their London and Rome offices, was selected for the Khursaniyah Gas Plant. The scope of work covers construction of two trains of gas conditioning and ethane and NGL recovery with a total capacity of 1 billion standard cubic feet per day (scf/d). The facilities will produce a total of 550 million scf/d of sales gas and 240 000 b/d of ethane and NGL and 1800 metric tons (mt) of sulphur. Saudi Aramco also awarded five new contracts to build the world’s largest NGL processing plant at Hawiyah to recover ethane and NGL from around 4 billion scf/d of sales gas. Japan’s JGC Corp. was awarded the contract for the Hawiyah NGL and related facilities, consisting of three NGL recovery trains, product surge and shipping facilities, utilities, tank and process control system. Snamprogetti will carry out the work relating to the gas treating and compression facilities which will include inlet distribution, two gas treating trains, sales gas compression, and electrical system and support facilities. Contracts for communication, plant infrastructure facilities and temporary camp and catering services were signed with local contractors General Telecom and Engineering, Modern Arab Construction and National Engineering Services and Marketing Agency. Under a separate contract, Spain’s Tecnicas Reunidas will expand the Ju’aymah Gas Fractionation Plant as part of the Hawiyah NGL Recovery Programme. The contract calls for the construction of a fourth train to fractionate 270 000 b/d of ethane and NGL and 100 000 b/d of propane and NGL. These contracts emphasise Saudi participation in the engineering and construction phases of the programme. Saudi employment needs have been included as part of the project requirements, in addition to using local engineering firms for the design phase. Saudi Aramco has been building relationships with engineering and construction firms around the world, and the contracts reflect the sophistication of these partnerships. Aramco has demonstrated an unwavering commitment to establishing relationships with international contractors, manufacturers and suppliers, the company said in a statement. “The stage is now set for a new and lucrative business relationship between Saudi Aramco and contractors,” said Saad F. Al Dosari, Aramco’s acting executive director of project management.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code