Europeans awarded Khurais pipelines

18 May 2006

Italy's Saipem and Suedrohrbau of the Netherlands were awarded on 13 May the three main seawater/crude oil pipeline packages serving the onshore Khurais oil increment programme. Saipem was awarded packages A and C, while package B was awarded to Suedrohrbau. In total, the three packages are worth $330 million-350 million (MEED 7:4:06).

Package A involves the installation of a 78-kilometre-long, 56-inch-diameter pipeline from Qurayyah to Ain Dar, where it will join up with a 144-kilometre, 60-inch-diameter pipeline to Khurais, while package B covers 495 kilometres of 18-36-inch-diameter pipe from Khurais to the Mazalij oil field. Package C calls for the installation of a 135-kilometre-long, 60-inch pipeline from Qurayyah to Haradh and a 48-kilometre, 42-inch pipeline from Haradh to Abu Jaffan. There will also be more than 32 kilometres of 16-20-inch-diameter injection pipe.

About six companies submitted technical and commercial bids in late March to Aramco for the engineering, procurement and construction (EPC) contracts.

The other bidders are Lebanon's Contracting & Trading Company (CAT), Tekfen of Turkey with the local Al-Rashid Trading & Contracting Company, Cyprus-based Joannou & Paraskevaides (J&P - Overseas), and Russia's Stroytransgaz, with the local Metal Services Company. The pipelines are due to be installed by the third quarter of 2008.

The Khurais project is aimed at the delivery of 1.2 million barrels a day of Arabian Light crude by late 2008 or early 2009. Bids are due to be submitted on 7 June for the two main packages on Khurais - the gas-oil separation plant (GOSP) and the central gas processing facilities.

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