Aramco awards two EPCI deals

03 January 2017

Contracts involve supply and installation of wellheads and upgrades on offshore fields

A consortium of L&T Hydrocarbon Engineering (LTHE), a fully owned subsidiary of India’s Larsen & Toubro, and Emas Chiyoda Subsea, has bagged two contracts from the state-controlled oil and gas giant Saudi Aramco,

The first engineering, procurement, construction and Installation (EPCI) deals involve supply and installation four wellhead decks in the offshore Safaniya field and the second includes upgrades on 17 platforms in various offshore fields.

“It is an opportunity for Aramco to benefit from our flagship facility at Hazira as the center of fabrication of the four decks in one of the contracts. It is also an opportunity for our consortium to build in-Kingdom skills and capabilities to deliver the brownfield work in the other project,” LTHE chief executive Subramanian Sarma said in the statement.

The contracts are part of Aramco’s Long-Term Agreements awarded to initially to four international companies in June last year, according to a statement on L&T website which didn’t give the value of the contract.

The LTAs give US firms Dynamic Industries and McDermott, consortium of L&T/Emas and Italy’s Saipem exclusive rights to bid for a number of contracts in the kingdom’s offshore oil and gas sector. Added UAE-based National Petroleum Construction Company (NPCC) as the fifth LTA contractor on 13 October.

Aramco, the world’s biggest oil exporter, plans to spend $334bn over the next decade in the kingdom to improve its oil and gas infrastructure.

The company, which accounts for more than 70 per cent of the kingdom’s revenue generation, in November awarded Saipem two deals with a combined value of $1bn for the development of the Marjan, Zuluf and Safaniya offshore oil fields,

Saipem will carry out the design, engineering, procurement, construction, installation and implementation of subsea systems for the three offshore facilities. It will also lay pipelines, subsea cables and umbilicals, platform decks and jackets. The contracts also include additional maintenance and dismantling works on the existing platforms already operating in the fields.

Aramco is still considering several multi-billion offshore deals to upgrade its ageing offshore oil and gas infrastructure.

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