Saudi oil major assessing bids on major offshore project
Two companies have emerged as frontrunners to win the main contract on Saudi Aramcos Hasbah offshore gas field expansion, according to sources familiar with the project.
US-based Dynamic Industries and Italys Saipem were the two lowest engineering, procurement and construction (EPC) bidders, and one of the two is likely to win the estimated $1.5bn deal, several sources told MEED.
The kingdoms state-owned oil and gas producer received four technical EPC proposals in November, and has since opened the bid prices.
The tender is part of the Long-Term Agreement (LTA) signed between Aramco and four groups last year.
The bidding companies are:
The bids submitted by Dynamic Industries and Saipem are thought to be very close in terms of price, with McDermott the third-lowest bidder and Larsen & Toubro submitting the highest-value proposal.
Saipem is understood to be in a good position to win the deal after recently completing the offshore section of the $4.6bn Wasit gas programme for Aramco.
The Italian firm was awarded more than $2bn of work on Wasit to bring online the first production of non-associated gas from the offshore Hasbah and Arabiyah fields.
The new Hasbah scheme will expand the production capacity of the field by an additional 2 billion cubic feet a day (cf/d), which will be piped to the onshore under-development Fadhili gas plant.
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