Aramco assessing bids for offshore oil field deals

06 October 2016

Sources indicate that Italian group is set to be awarded at least one contract

Saudi Aramco is assessing bids on two contracts to supply and install facilities at offshore oil fields in the Gulf, according to sources familiar with the matter.

The contract release purchase orders (CRPO) are part of Aramco’s Long-Term Agreement (LTA), which gives four companies exclusive rights to bid for a number of contracts in the kingdom’s offshore oil and gas sector.

The scopes of are the two contracts set to be awarded are:

  • Ten slip-over jackets, nine slip-over decks with pipelines and cables at the Safaniya field
  • Seven SSS platform decks with pipelines and cables associated with the Marjan and Zuluf fields

Companies vying for the CRPOs include the four LTA contractors: US-based Dynamic Industries; India’s Larsen & Toubro; US group McDermott; and Italy’s Saipem.

Saipem is expected to be awarded the CRPO on the Marjan and Zuluf fields having made an initial agreement with Aramco, according to three industry sources. Two sources expect Saipem to also win the Safaniya contract.

Safaniya, Marjan and Zuluf are among the largest offshore oil fields in Saudi territory, located about 200 kilometres north of Aramco’s headquarters in Dhahran.

Aramco is currently assessing bids for an estimated $1.6bn contract to expand operations at the Safaniya field, MEED revealed earlier this week.

Aramco entered the LTA with international companies in 2015 and has since awarded several contracts. The largest deal of this year was awarded to Larsen & Toubro on the expansion of the Hasbah gas field.

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