Saudi Aramco receives bids for $3bn Khurais expansion

18 August 2014

Five packages now under evaluation for major upstream project in Eastern province of Saudi Arabia

Saudi Aramco has received the bids for five engineering, procurement and construction (EPC) contracts at its planned $3bn expansion of its Khurais oil field in the East.

MEED reported in early July that the tenders had been released. The packages are:

  • Central processing facilities expansion
  • Seawater pipeline
  • Mazlij-Abu Jifan pipeline
  • Offsites and utilities
  • Site preparation

The largest package, by some margin, is the expansion of central processing facilities. The budget is expected to be $1.5bn-$2bn and has attracted interest from several international contractors including:

Not all of these contractors are bidding on the other packages with specialist pipeline contractors, as well as several local companies expected to compete for much of the rest of the work.The contractors bidding for the two pipeline packages are:

  • Al-Rashid Trading & Contracting (Local)
  • C.A.T Group (Lebanon)
  • Consolidated Contractors Company (Athens-based)
  • Dutco McConnell Dowell (UAE)
  • HAK Group (Local)
  • Saipem (Italy)
  • Saudi KAD Construction (Local)
  • Tekfen Holding (Turkey)

The US’ Foster Wheeler is carrying out the front-end engineering and design (feed) for the scheme.

Aramco plans to add 300,000 barrels a day (b/d) to the field’s current capacity of 1.2 million b/d. Khurais is located adjacent to the Ghawar oil field, one of the world’s largest, in the Eastern Province of Saudi Arabia. It began operations in 2009 and produces 1.2 million b/d of light Arabian crude, 320 million cubic feet a day (cf/d) of gas and 80,000 b/d of natural gas liquids (NGLs).

The expansion at Khurais, as well as the planned increase of 250,000 b/d at the Shaybah field in the Empty Quarter, will ease production at other oil fields and will not increase the kingdom’s 12.5-million-b/d capacity.

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