Contractors await decision on Khurais expansion

16 July 2015

Final decision to proceed with $3bn Saudi oil field project has not been taken

  • Aramco is still weighing up costs of oil field expansion
  • Oil major was due to make decision in June

Contractors are still waiting for a decision by Saudi Aramco on the fate of the $3bn Khurais oil field expansion in Saudi Arabia, as the state oil producer weighs up the costs.

Saudi oil and gas sources told MEED earlier this year that Aramco was due to make a decision in June on whether to go ahead with the expansion, but has yet to make a final decision.

Aramco has held discussions regarding lowering the costs with Italy’s Saipem, the contractor awarded the $2bn contract for the main processing facilities at its $3bn Khurais expansion project.

The oil major had already taken steps to manage cash flow by extending the execution phase of Khurais by another 12 months.

Two other pipeline packages are included in the expansion and will be constructed by two local contractors.

The packages and contractors are:

  • Mazlij-Abu Jifan pipeline – Saudi KAD Construction
  • Seawater pipeline – HAK Group

If Aramco sticks to its original plans, 300,000 barrels a day (b/d) of oil will be added to the field’s current capacity of 1.2 million b/d.

Khurais is located adjacent to the Ghawar oil field, one of the world’s largest, in the Eastern Province of the kingdom. The field began operations in 2009 and produces 1.2 million b/d of light Arabian crude, 320 million cubic feet a day (cf/d) of gas and 80,000 b/d of natural gas liquids (NGLs).

Stay informed with the latest in the Middle East
Download the MEED app today, available on Apple and Android devices

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