Japanese giant in frame for Saudi Aramco contracts worth more than $2bn

Japanese engineering titan JGC is within the body for 2 sizeable onshore engineering, procurement and development contracts from Saudi Aramco involving its Zuluf oilfield, promising incremental venture within the Persian Gulf.

A number of folks conversant in the event advised Upstream that Aramco lately handed over letters of intent for the 2 onshore EPC packages understood to be value between $2 billion and $2.5 billion collectively.

The Zuluf growth is a key ingredient of Saudi Arabia’s technique to extend its crude manufacturing capability to 13 million barrels per day and preserve its place because the world’s largest crude exporter.

“JGC is in receipt of the LoI’s and a proper announcement is but to be made by Aramco,” one individual stated.

The Package deal 1 contract is described the bigger of the 2 and entails onshore processing amenities together with two gas-oil separation plant trains, every with a capability of 300,000 bpd of oil, plus two fuel compression trains and moist crude dealing with amenities.

The Package deal 2 contract includes water-injection pumps, a water-oil separation plant, a sizzling oil system, electrical and non-electrical utilities, plus different related amenities.

Along with JGC, South Korea’s Hyundai E&C and Samsung E&C, Italy’s Saipem, Spain’s Tecnicas Reunidas and India’s Larsen & Toubro (L&T) had been stated to be initially concerned within the bid course of.

Aramco and JGC are but to reply to Upstream’s requests for touch upon the Zuluf bid course of.

The Saudi large is finishing up a number of onshore and offshore EPC tenders for work on increasing the capability of the Zuluf oilfield, signposting as much as $7 billion value of contracts.

Earlier this 12 months, Aramco finalised awards value greater than $4.5 billion for 5 key offshore packages linked to the Zuluf oilfield growth.

McDermott Worldwide of the US, Abu Dhabi’s Nationwide Petroleum Building Firm and a pairing of L&T with Oslo-listed Subsea 7 landed prized EPC packages for the large growth scheme, Upstream reported.

The Zuluf incremental venture goals to spice up oil output by as much as 600,000 bpd, nearly doubling its current capability.

The offshore oilfield presently produces 550,000 to 600,000 bpd of crude from the Arabian Medium reservoir. The following growth part will faucet the sphere’s Arabian Heavy reservoir.

The Zuluf area is situated round 40 kilometres offshore Saudi Arabia’s northeast coast in about 40 metres of water.