EXCLUSIVE: Saudi Aramco reassessing budget for Berri pipeline project

07 February 2018
Contract award is expected in mid-March

Saudi Aramco has delayed the award of the engineering, procurement, and construction (EPC) contract for the replacement of offshore pipelines for the Berri oil field as it considers the project’s budget, according to industry sources.

The contract is estimated to be worth around $200m.

“Saudi has delayed the contract award as it reassesses the project’s budget,” a source said.

“The contract award is now expected in mid-March.”

The scope of the project includes the replacement of offshore pipelines, fabrication works, demolition works, and associated facilities.

The following companies are thought to have bid on the project:

  •  Saipem
  • Mcdermott
  • Larsen & Toubro/ Subsea 7 JV
  • Dynamic Industries
  • NPCC

 The Berri field extends off Saudi Arabia's east coast, about 50 kilometres north of the export terminal at Ras Tanura. 

 The field is a giant anticline measuring 40 kilometres north to south, and 20 kilometres east to west.

 It has 11 oil-bearing reservoirs and originally had reserves in excess of 15 billion barrels.

 The field’s most significant deposits are the Arab A, B, C and D reservoirs, which produce Arabian light crude, as well as the Hanifa, Hadriya and Upper Fadhili reservoirs, which produce Arabian extra light.

 A deeper reservoir, the Lower Fadhili, also contains Extra Light but has not been developed because of its low permeability.

Aramco is currently preparing to issue the tender for a $6bn expansion of the Berri field. The EPC contract award for the Berri expansion is likely to be awarded next year and it is expected to be completed in 2022.

Under current plans, the project will increase production from the field by 250,000 barrels a day (b/d).

 

In January, Aramco awarded US-based McDermott a contract for the engineering, procurement, construction and installation (EPCI) of 13 jackets in Aramco’s offshore fields of Zuluf, Marjan, Berri and Abu Safah.

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