Techint, Technip battle it out for GOSP-3

02 April 2004
Two companies - Italy-based Techintand Paris-based Technip- have been shortlisted by Saudi Aramcofor the main package on the third gas/oil separation plant (GOSP-3) project at Haradh. Aramco is expected to award in the first half of April the second package on the project, involving the extension of existing pipeline systems to transport crude oil, gas and seawater to and from the Haradh GOSP-3 facility (MEED 27:2:04).

Techint and Technip are understood to have submitted prices in the range of $180 million-$200 million for the lump-sum turnkey (LSTK) contract to build the GOSP-3 facility, which will have capacity of 330,000 barrels a day of oil and 143 million cubic feet a day of gas. The contract is expected to be awarded in April, once final clarifications have been completed. Completion is set for the second quarter of 2006.

The other three bidders for the package to build the plant were Foster Wheeler Italiana, Italy's Snamprogettiand Spain's Tecnicas Reunidas. Nine companies were prequalified last year to bid for the contract, but four subsequently declined.

The Haradh GOSP-3 plant will support the production of Arabian light crude from the Haradh-3 production area. Apart from the GOSP unit, the successful bidder will install a desalter/dehydrator, a water/oil separator, two high-pressure production traps, a low-pressure production trap, three seawater injection pumps, two crude shipping pumps, plant utilities and gas-gathering facilities. Additional work covers the installation of an injection pump at Haradh GOSP-2.

The UK office of US-based Foster Wheeleris providing project management consultancy (PMC) services and the front-end engineering and design (FEED) for the scheme.

For the estimated $55 million-60 million Haradh GOSP-3 pipeline package, Turkey's Tekfenand Suedrohrbauof the Netherlands are understood to be the frontrunners for the LSTK contract. Aramco will supply the pipeline, with the successful contractor procuring all other materials. The project involves the installation of more than 170 kilometres of crude and gas pipelines.

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