Aramco assessing bids on offshore packages worth over $500m

16 February 2017

New facilities to be installed across oil and gas fields on kingdom’s Gulf coast

Saudi Aramco is assessing bids on three projects to install offshore oil and gas facilities valued at over $500m combined, according to industry sources.

Bids were submitted by the five international engineering groups contracted under Aramco’s Long-Term Agreement (LTA) programme to upgrade its offshore assets in the Gulf.

Companies submitted bids on 30 January for a project to install four decks and associated platforms at the Safaniya, Zuluf and Berri fields.

On 8 February, bids were submitted on two separate packages on the engineering, procurement, fabrication, transport and installation of jackets on offshore fields. Jackets are the steel frame supporting the deck and the topsides in a fixed offshore platform.

One project is to install 10 jackets at the Zuluf, Marjan and Berri, while the other covers nine jackets at the Safaniya, Marjan and Hasbah fields.

The two contracts to install jackets are likely to be awarded to the same company due to the similarity of the scopes, according to an industry source.

Each of the three packages are estimated to be worth around $175m. They are thought to be the only three deals currently out to bid under the LTA programme. 

The LTA deal was initially signed in 2015 with four international EPC contractors including the US’ Dynamic Industries, a joint venture of India’s Larsen & Toubro, and Singapore’s Emas, McDermott and Italy’s Saipem. UAE-based National Petroleum Construction Company (NPCC) became the fifth LTA contractor in October 2016.

The LTA gives five international contractors exclusive rights to bid for several oil and gas producing platforms, tie-in platforms, pipelines, power cables and related facilities under Aramco’s masterplan for its offshore fields.

Aramco has already awarded several contracts as part of the LTA over the last two years. The group in January awarded a new contract to McDermott, while both Dynamic Industries and NPCC recently picked up their first deals under the LTA.

MEED reported this week that Aramco is looking for additional companies to join the LTA programme due to the large volume of work to be tendered over the coming years.

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