Aramco evaluates bids on offshore oil facilities

18 October 2016

Oil major expected to make a decision on $400m deal by end of October

Saudi Aramco, the world’s biggest oil exporter, is expected to award an estimated $400m contract for two offshore fields by the end of this month, according to sources familiar with the matter.

Aramco is currently evaluating bids from contractors in its Long-Term Agreement (LTA) programme for the Hasbah and Berri oil fields. The engineering, procurement and construction (EPC) deal involves the engineering, fabrication and installation of four jackets and three observation platforms, the sources say.

In June 2015, Aramco signed LTA deals with four international EPC contractors, which gave them exclusive rights to bid for several oil and gas producing platforms, tie-in platforms, pipelines, power cables and related facilities under the masterplan for its offshore fields.

The four companies are:

UAE-based National Petroleum Construction Company (NPCC) became the fifth LTA contractor on 13 October.

Aramco plans to spend $334bn over the next decade in the kingdom to improve its oil and gas infrastructure.

It is currently assessing bids for a deal to expand operations at the Safaniya offshore oil and gas field, sources told MEED on 5 October. The EPC proposals were submitted by LTA contractors in late July.

In addition, the company is also evaluating bids on two contracts to supply and install 10 slip-over jackets, nine slip-over decks with pipelines and cables at the Safaniya field and seven SSS platform decks with pipelines and cables associated with the Marjan and Zuluf fields.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications