EXCLUSIVE: Aramco pipeline project reaches halfway point

07 March 2018
Berri oil field package is estimated to be worth $150m

The Saudi Aramco project to install five pipelines at the offshore Berri oil field in Saudi Arabia has reached the halfway point, according to industry sources.

“The project is about 50 per cent complete,” one source says.

The engineering, procurement and construction (EPC) contract for the project was awarded to a joint venture (JV) of Dammam-based Bandariyah International and New Orleans-based Dynamic Industries in January 2017.

The project is a part of the Aramco’s long-term agreement (LTA) programme, which includes installing facilities at offshore oil fields in the Gulf of Saudi Arabia.

The scope of the work includes:

  • Installation of five pipelines
  • Fabrication works
  • Demolition works
  • Associated facilities

Only five companies are permitted to bid on projects within the LTA programme. These are:

  • Saipem (Italy)
  • Larsen & Toubro Hydrocarbon Engineering (India)/Subsea 7 (from the UK, which acquired the Saudi Arabia unit of Singapore’s EMAS Chiyoda)
  • Dynamic Industries (Saudi Arabia)
  • McDermott International (US)
  • National Petroleum Construction Company (UAE)

In February, MEED revealed that Aramco is preparing to expand the offshore contractor pool.

Aramco is understood to be reviewing proposals from several local and international companies, although it is not known how many it expects to sign agreements with.

Local candidates are said to include Riyadh-based Mohammed Ali Al-Swailem Group (Masco), and the recently formed JV of local engineering firm Arkad and Swiss industrial giant ABB.

International contractors include France’s TechnipFMC, which has a strong track record of working on oil and gas projects in the kingdom, and strengthened its subsea capabilities with the acquisition of Houston-based FMC Technologies last year.

Spanish EPC contractor Dragados Offshore has also confirmed being invited by Aramco to bid for inclusion in the group.

The UK’s Wood Group, KBR from the US, Dubai-based Lamprell and China’s Offshore Oil Engineering Company (COOEC) are also said to be among the international contractors seeking inclusion on Aramco’s LTAs, along with several South Korean players.

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