Spain’s Tecnicas Reunidas (TR)
has been selected for the two main packages, totalling $900 million-1,000 million, on the project to expand the refinery by 80,000 barrels a day (b/d). TR was picked for the work after it submitted the low bid under a proposal to carry out both packages jointly. The contract will be partly carried out on a cost reimbursable basis and not – as originally planned – purely on an engineering, procurement, construction and commissioning (EPCC) basis. It will be converted to lump-sum turnkey (LSTK) after 50-60 per cent of the detailed engineering and the procurement of some long-lead items is completed. Aramco changed its contracting strategy in an attempt to control cost and risk for the contractor.
The first package involves the installation of a vacuum distillation unit, two vacuum gas oil hydrotreaters, a hydrogen plant and two flue gas desulphurisation (FGD) units. Package 2 calls for the construction of a butane complex consisting of two amine regeneration units, sour water strippers and sulphur recovery units. TR’s competitor on the first package was Canada’s SNC Lavalin
. The other bidders on package 2 were SNC and Taiwan’s CTCI
has been selected for the main utilities and offsites (U&O) package on the Rabigh development, which is worth $400 million-500 million. The contract calls for the construction of seawater intake and cooling water pumping systems, an air separation unit, a compressed air system, a reverse osmosis (RO) water system, a sulphur forming unit, a wastewater plant and related infrastructure, including a berth and jetty. The other bidders for the contract, which will also be executed on a cost reimbursable basis before being converted to LSTK, included Japan’s Ishikawajima-Harima Heavy Industries (IHI)
and Italy’s Saipem
Finally, the client has selected the UK’s Whessoe Oil & Gas
for the second U&O package, which covers the construction of a storage tank farm. Under the deal, Whessoe will build 32 storage tanks, with capacities ranging from 2,700-33,000 cubic metres for storing different types of petroleum and petrochemical products. Whessoe won the contract against competition from France’s Entrepose
with Malaysia’s KNM Process Systems
, and Saipem.
Bid documents were released on 26 June for the estimated $150 million-200 million EPC contract to build parallel ethane and butane pipelines over a distance of 212 kilometres between the Rabigh complex and the existing Yanbu natural gas liquids (NGL) facility. At least five firms are prequalified to bid for the contract by the 3 September deadline.
UK-based Foster Wheeler Energy
is the overall project management services (PMS) contractor on the Rabigh programme. Sumitomo-Mitsui Banking Corporation (SMBC)
is acting as financial adviser.