South Koreans are frontrunners for Wasit gas onshore packages

18 January 2011

South Korean contractors expected to win all four engineering, procurement and construction packages for $6bn-plus gas project

Saudi Aramco is expected to award the four onshore engineering, procurement and construction (EPC) packages of the $6bn-plus Wasit gas development programme in the kingdom to two South Korean contractors.

SK Engineering & Construction (SK E&C) has emerged as the favourite for three of the packages available with Daelim set to secure the fourth package.

Delivered sales gas
BTUs per day (Trillions)
YearDelivered sales gas
20055.553
20065.829
20075.99
20086.588
20096.313
Source: Saudi Aramco 

“Aramco has called for talks with SK and Daelim regarding the Wasit project,” says a Saudi Arabia-based contracting source. “Nothing has been signed yet, but they are very close to agreeing a deal.”

The three packages SK E&C are likely to win at Wasit are the main inlet and gas processing facilities; natural gas liquids (NGL) fractionating column, and sulphur recovery facilities comprising four 1,200 tonne-a-day (t/d) units; along with the main supporting utilities for the scheme.

Daelim looks set to sign a deal with Aramco for the power co-generation unit.

“The deal is not completed yet and I think there is still a little bit of work to do before it is signed,” says a South Korean contracting source. “SK is in a good position and have submitted the best prices, but Aramco wants to be sure SK has the capacity to complete the work on three packages.”    

Aramco, SK E&C and Daelim were not available for comment when contacted by MEED.

Under the Wasit scheme, Aramco wants to produce 2.5 billion cubic feet a day (cf/d) of sulphur-rich non-associated gas from the offshore Arabiyah and Hasbah fields, located off the coast of the Eastern Province, before transporting it to central processing facilities at Wasit.

The four EPC contracts are for the main processing facilities at Wasit, on Saudi Arabia’s Gulf coast, which will be capable of handling 1.7 billion cf/d of gas and 4,800 t/d of sulphur.

The bids for the two offshore EPC packages on Wasit are still being considered by Aramco. The $74m onshore site preparation contract was won by the local Abdulali Al-Ajmi Company (Al-Ajmi) (MEED 17:12:10)

 

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