SNC in line for Shaybah CPF package

24 March 2006
Canada's SNC Lavalin is understood to have been selected for the central processing facilities (CPF) package on the Shaybah oil field expansion project, planned by Saudi Aramco. However, the tender for the intermediate pumping station (IPS) contract, the second main package on the estimated $1,500 million field development scheme, has been cancelled following a revision in the scope of works (MEED 10:2:06).
The estimated $700 million engineering, procurement and construction (EPC) CPF contract calls for the construction of a grassroots gas-oil separation plant (GOSP), gas gathering, compression and reinjection facilities. It also involves wet crude and produced water handling facilities, in-field pipelines, non-electric utility and process automation control systems. The client is expected to make a formal award soon. Commissioning is set for the third quarter of 2008.

SNC beat off competition from four other international contractor groups to win the work, which, in line with Aramco's updated contracting strategy, will be awarded on a convertible lump-sum turnkey (LSTK) basis. Detailed engineering will be carried out on a cost reimbursable basis before being converted to a lump-sum amount once 60 per cent of the design is complete (MEED 23:12:05).

Aramco cancelled the tender for the estimated $500 million IPS package after deciding that the location of the planned facility would be too remote and inaccessible to make it feasible. It is now understood that the client will look to expand existing pumping facilities to compensate. A tender for the revised project is expected to be issued soon.

The Shaybah expansion will add 250,00 barrels a day (b/d) of new capacity at the field. It is part of a major investment programme at Aramco aimed at raising oil capacity to 12.5 million b/d by 2010. A team of the US' Jacobs Engineering, Saudi Consulting Services (SaudConsult) and SNC is the front-end engineering and design (FEED) contractor on the field development (MEED 11:11:05).

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