Saudi Aramco has confirmed the award of two further engineering, procurement and construction (EPC) contracts for the development of its Karan gas field to the UAE-based J Ray McDermott and South Korea's GS Engineering & Construction.
Both companies were selected for the awards in 2009 but had to resubmit cheaper bids in the last few months to reflect falling commodity and labour prices (MEED 17:2:09).
Aramco says McDermott's contract covers the manufacturing and installation of four platforms, and the construction of a 110-kilometre subsea pipeline to carry offshore sour gas from the Karan field for treatment and processing at the onshore Khursaniyah gas plant.
GS is building the central gas processing facility on the development.
The awards follow the confirmation earlier this month of two other EPC deals to South Korea's Hyundai Engineering & Construction and the UK's Petrofac on the gas field (MEED 2:3:09).
Aramco says the Karan field is its first offshore non-associated gas project and is a response to the growth of domestic demand for gas in Saudi Arabia.
The project is expected to process 1.8 billion cubic feet a day (cf/d) of gas with production start-up scheduled for the middle of 2011.
The offshore field is understood to contain more than 9 trillion cubic feet of gas.
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