Aramco close to awarding five key offshore contracts

09 May 2023
The Saudi energy giant has notified respective contractors about their selection for CRPOs 97, 99, 100, 101 and 124, sources told MEED


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Saudi Aramco is close to awarding main contracts for at least five major offshore engineering, procurement, construction and installation (EPCI) tenders, and has notified contractors about their selection.

Aramco’s Long-Term Agreement (LTA) contractors submitted bids for four of these five tenders, issued through the Contracts Release and Purchase Order (CRPO) system, between November and December last year, MEED previously reported. Technical and commercial bids for the fifth CRPO were submitted in January this year.

The following LTA contractors are in line to win the CRPOs in question, according to sources:

  • CRPO 97 – National Petroleum Construction Company (NPCC) (UAE)
  • CRPO 99 – McDermott (US)
  • CRPO 100 – McDermott (US)
  • CRPO 101 – McDermott (US)
  • CRPO 124 – Saipem (Italy)

The precise timing of the official contract awards for these five CRPOs is unknown, although sources expect Aramco to issue the formal orders “within days”.

“Following the announcement of the first quarter [2023] results today [9 May], Aramco could officially award the contracts imminently,” one source said.

MEED has not been able to estimate the financial values of CRPOs 97, 99, 100, 101 and 124 at this point. The EPCI scopes of work on these tenders are as follows:

  • CRPO 97 – Installation of structures at Abu Safah:
    • Two jackets at Abu Safah
    • Three production deck modules (PDMs)
    • Pipeline replacement
    • Associated facilities
  • CRPO 99 – Upgrade and installations at Zuluf tie-in platform (ZTP) 5:
    • Upgrade of three PDMs
    • Installation of a slipover PDM
    • Installation of a new PDM
    • Upgrade of ZTP 5
  • CRPO 100 – Upgrade and installations at ZTP 3:
    • Upgrade of two PDMs
    • Installation of seven slipover PDMs
    • Installation of two 16-well PDMs
    • Installation of auxiliary platforms
    • Upgrade of ZTP 3
  • CRPO 101 – Supply of structures at Zuluf:
    • Provision of 22 15 kilovolt (kV) cables/pipelines covering a total length of 112 kilometres
    • Provision of eight cables/pipelines covering a total length of 23km
  • CRPO 124 – Marjan gas field phase 3:
    • EPCI of five standardised, simplified and SIMOPS-capable (SSS) gas lift platform
    • Demolition of existing structures
    • Five PDMs
    • Upgrade of TP 7 at gas oil separation plant (GOSP) 4
    • Subsea flowlines of 4 and 6-inches covering a distance of 23km
    • Subsea cables spanning 17km
    • Fibre optic cables spread across 6km.

Aramco had earlier declined to comment on MEED’s request for information on the CRPO tenders.

Robust offshore spending

Most of the kingdom’s oil and gas production comes from its offshore hydrocarbon resources in fields including Abu Safah, Arabiyah, Hasbah, Berri, Karan, Manifa, Marjan, Ribyan, Safaniya and Zuluf.

It is, therefore, crucial for Aramco to maintain and gradually increase productivity at these fields, some of which are mature.

To that end, the state enterprise is poised to award more than $3bn of offshore EPCI deals to entities in its LTA pool of offshore contractors by the end of the second quarter of this year.

Aramco has already awarded approximately $2.25bn-worth of contracts as part of this projected spending so far this year.

A consortium of Indian contractor Larsen & Toubro Energy Hydrocarbon (LTEH) and UK-based Subsea7 has won six offshore EPCI contracts from Saudi Aramco, estimated to be worth close to $2bn.

LTEH/Subsea7 won CRPOs 98, 120 and 121, which cover EPCI work on Saudi Arabia’s Zuluf, Hasbah and Manifa offshore oil and gas fields. The combined value of the three CRPOs, awarded to the consortium in March, is estimated to be $1bn.

In April, LTEH/Subsea7 won CRPOs 117, 118 and 119, which cover EPCI work on Saudi Arabia’s Marjan offshore oil and gas field development. The three tenders are thought to be worth over $900m.

Italian contractor Saipem confirmed in early April that it had won CRPO 96, estimated to have a value of $120m. The scope of work on the tender covers the EPCI of one platform topside and the associated subsea flexible, umbilical and cable systems at the Abu Safah and Safaniya fields.

Also in April, China Offshore Oil Engineering Company (COOEC) won the CRPO 122 contract, estimated to be worth $255m, covering the installation of 13 jackets at the Safaniya field.

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