Prequalified contractors are preparing to submit bids for the main engineering, procurement and construction (EPC) works for the offshore packages of Saudi Aramco’s $14bn-$15bn Marjan mega oil and gas field development.

Aramco has set a deadline of 13 January for contractors to submit bids for the offshore packages, according to a source.

It is understood that the Marjan crude increment programme comprises five offshore packages with an estimated combined value of $2.65bn.

Marjan offshore package 1 relates to the commissioning of a new gas oil separation plant (GOSP 4) and installing crude export pipelines. The package is estimated to be worth $500m.

Package 2, valued at about $500m, covers construction and installation of offshore facilities at the project.

EPC works on package 4 pertain to provision of offshore gas facilities to process a total of about 1.26 billion cubic feet a day (cf/d) of gas from the Marjan field, with the bulk of the associated gas coming from GOSP 4. This package is also understood to be worth $500m.

Work on a fourth package covers the building and commissioning of GOSP 2.

Bids for package 3 of the offshore project, related to the provision of water injection facilities and works, were submitted in July last year.

MEED is trying to ascertain the status of package 3, and whether the contract has been awarded or not.

Aramco exclusively tenders offshore EPC works to its chosen pool of contractors, with which it has long-term agreements (LTAs).

However, for the Marjan offshore packages Aramco has tendered the EPC contracts to its general bid slate (GBS), according to the source. This includes other offshore contractors as well as the five existing LTA contractors listed below:

• Saipem (Italy)
• Larsen & Toubro Hydrocarbon Engineering (India)/Subsea 7 (UK; acquired the Saudi Arabia unit of Singapore’s EMAS Chiyoda)
• Dynamic Industries (Saudi Arabia)
• McDermott International (US)
• National Petroleum Construction Company (UAE)

Aramco recently added four groups of contractors to its coveted LTA pool – a consortium of Lamprell (UAE/UK)/Royal Boskalis Westminster (Netherlands); Sapura (Malaysia); a consortium of TechnipFMC (France)/MMHE (Malaysia); and China Offshore Oil Engineering Company (China). It is not clear if the Marjan offshore EPC works have been tendered to the new entrants as well.

Aramco’s objective for the offshore packages of the Marjan crude increment programme is to transport crude and associated gas from the oil and gas field to facilities in Tanajib on Saudi Arabia’s Gulf coast and eventually to the natural gas-to-liquids facility in Khursaniyah.

When completed, the offshore infrastructure EPC works tendered by Aramco will be able to handle 475,000 barrels a day (b/d) of oil, 813,000 b/d of liquids and 747 million cf/d of associated gas.