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.

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).