Aramco set to award $3bn worth of Manifa oil field deals

06 June 2008
Saudi Aramco is poised to formally award $3bn worth of deals on its 900,000-barrel-a-day (b/d) Manifa oil field development as part of its bid to increase production capacity to 12.5 million b/d by next year.

Italy’s Snamprogetti, Japan’s JGC Corporation and Spain’s TR have secured the three main engineering, procurement and construction deals on the development.

Although none of the contracts have been formally signed, the three firms are expected to announce their wins within the next two weeks. Snamprogetti has won the main $1.8bn package covering the construction of central processing facilities including a gas-oil separation plant. It was awarded the contract ahead of JGC, TR, South Korea’s Hyundai Engineering & Construction Company, France’s Technip, Japan’s Chiyoda Corporation and Italy’s Techint.

JGC is poised to take the second package, worth $800m, covering the utilities, storage and shipping at the central processing facility. It competed with Techint, Snamprogetti and Hyundai Engineering & Construction for the contract.

TR secured the smallest package, worth $500m, covering power generation and the main substation, ahead of bids from South Korea’s Hyundai Heavy Industries and Italy’s Tecnimont.

In September 2007, Aramco reissued the qualification notice for the main package, after deciding to integrate the gas facilities with the $10bn Karan gas field development.

Contractors submitted bids in February for the offshore portion of the field, which includes 300 kilometres of pipelines.

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