Aramco awards Mustang Engineering design deal for Midyan

15 May 2012

US company to carry out front-end engineering and design work for non-associated gas field in Western Province

Saudi Aramco has awarded the US’ Mustang Engineering the front-end engineering and contract for the Midyan gas processing project in the Western province of Saudi Arabia.

The project will involve the development of the non-associated onshore Midyan gas field to produce 75 million cubic feet a day (cf/d) of gas and 4,500 barrels a day (b/d) of condensate for a period of 20 years. The output will be transported by pipeline to a power plant in the coastal town of Duba that is 135 kilometres to the southwest of the field.

The scope of works for Mustang will include the design of upstream and processing facilities for the Midyan field, as well as pipelines to transport the gas and condensate.

“This project is not massive like some of Aramco’s other non-associated gas fields, but it is still very interesting work for Mustang,” says an oil and gas contracting source based in Saudi Arabia.  “The facilities will be skid-mounted, which means that they can be transported to other smaller gas fields after production from Midyan is completed and this is a first for the kingdom.”

The feed is now being carried out and the engineering, procurement and construction (EPC) contracts will be tendered the third quarter of 2012, with an award set for November 2012. The contracts will be tendered on a lump-sum turnkey basis and the completion is scheduled for 2015.

Mustang has been awarded the project under the terms of the general engineering services plus (GES plus) contract that has been initiated by Aramco. The contract aims to keep the majority of Aramco’s detailed engineering work inside the kingdom.

The Midyan field has been developed by Aramco to alleviate the burning of crude oil for power generation in the northwest of the kingdom during the summer months. The area has a number of small non-associated gas fields that are also expected to be exploited to provide gas for power generation.

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