Saudi Aramco releases tender for $800m Midyan scheme

21 August 2012

Contractors formulate bids for Midyan non-assocated gas project in the kingdom’s Western Region

Saudi Aramco has released the engineering, procurement and construction (EPC) tenders for the $800m Midyan non-associated gas processing project in the Western province of Saudi Arabia.

MEED reported in May that Aramco had awarded the US’ Mustang Engineering the front-end engineering and design (feed) for the scheme.  

“The tender went out in mid-August and most of the contractors with gas processing capabilities will be going for it,” says a source based in Saudi Arabia. “It is not an easy project, [which] will probably mean some contractors decide not to participate.”

Contractors aiming to participate include:

The project will involve the development of the non-associated onshore Midyan gas field to produce 75 million cubic feet a day (cf/d) of gas and 4,500 barrels a day (b/d) of condensate for a 20-year period. The output will be transported by pipeline to a power plant in the coastal town of Duba, 135 kilometres southwest of the field.

The scope of works will include the EPC of upstream and processing facilities for the Midyan field, as well as pipelines to transport the gas and condensate. An interesting facet of the project will be that most of the facilities will be skid-mounted. This means that they can be transported to other smaller gas fields after production from Midyan is completed, which is a first for the kingdom.

The bid deadline for the tender submissions is mid-October and the contract will be tendered on a lump-sum turnkey (LSTK) basis. Completion is scheduled for 2015.

The Midyan field has been developed by Aramco to alleviate the burning of crude oil for power generation in the northwest of the kingdom during the summer months. The area has several small non-associated gas fields that are also expected to be exploited to provide gas for power generation.

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