Saudi Aramco has released the tender for the $300m engineering, procurement and construction (EPC) contract for a portion of pipeline at the Arabiyah and Hasbah non-associated gas fields in Saudi Arabia.

The project is part of the $4.6bn Wasit Gas Development is being executed off the Gulf coast and onshore at Wasit in the Eastern Province of the kingdom.

The work includes the main trunk line that will connect the two offshore fields with the onshore facilities. The winning contractor will lay 10 kilometres of the main trunkline with 36-inch diameter pipes cladded with a speciality non-corrosive alloy known as Inconel.

The project is part of the $4.6bn Wasit Gas Development that is being executed off the Gulf coast

“The initial plan was for the whole pipeline to be cladded with Inconel, but now that has changed and it is only the first 10km,” says a contracting source based in the kingdom. “Those first 10km will also be transporting condensate from the fields, so it was important to have the cladded pipe in place.”

At least five contractors have been prequalified for the contract:

• Global Offshore (US)
• McDermott (US)
• National Petroleum Construction Company (UAE)
• Saipem (Italy)
• Swiber (Singapore)

Initially, the timeline for the contract called for the winning contractor to complete the project by the end of 2013, but suppliers say the technical nature of the pipe order means delivery will not be possible until early 2014.

“The contract value seems high, but most of the $300m budget will be spent on the pipes,” says the source. “Cladding 36-inch diameter pipes with Inconel is very expensive and their construction very time consuming.”

MEED reported in early May that Saudi Aramco was facing long delays of up to 12 months on the Wasit scheme due to the dense sulphur content of the Arabiyah and Hasbah fields.  The project is also said to be over budget by an estimated $600m.