Aramco to award Wasit and Shaybah contracts by end of 2010

02 November 2010

Generator and gas compressor contracts winners to be announced in December

Saudi Aramco is expected to award the contracts for the rotating equipment for both the Wasit Gas Development and Shaybah Natural Gas Liquids (NGL) projects by the end of 2010.

Speaking on the sidelines of the Adipec 2010 conference currently being held in Abu Dhabi, a source tells MEED that the bids are currently being studied by Aramco and an announcement is expected in December.

Aramco gas sales (Trillion BTUs a day)
Figures in trillions of BTUs per day
Source: Saudi Aramco 

“The technology suppliers are hoping that the decision on the equipment will be made [in December] because large generators and gas compressors are long-lead items,” the source says.

“Large scale equipment like this takes time to build and then be supplied to the contractors responsible for the construction of the facilities at Wasit and Shaybah.”

The source declined to reveal the exact value of the contracts, but described them as “extremely significant”.

Saudi Aramco has tendered the rotating equipment for both projects and will then novate the contracts it agrees to the engineering, procurement and construction (EPC) contractors.

“It is vital that any technology provider has an excellent relationship with EPC contractors,” the source says. “Large projects need to ensure that the correct integration takes place, so being able to communicate with all the interested parties is vital.

The technology providers bidding to supply equipment includes Germany’s Siemens, the US’ General Electric (GE) and South Korea’s Doosan Heavy Industries & Construction.

The $6bn-plus Wasit gas scheme will see the two offshore sulphur-heavy gas fields, Arabiyah and Hasbah, undergo development by Aramco. About 2.5 billion cubic feet a day of gas will be produced from the fields and transported to the processing facility at Wasit (MEED 22:7:10).

The $2bn Shaybah NGL project will see Aramco separate around 228,000 barrels-a-day (b/d) of NGL from crude oil produced at the Shaybah field in the Empty Quarter of the kingdom (MEED 25:8:10).

Aramco is developing both projects to service the booming domestic demand for gas in the kingdom.

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