Saudi Aramco To Boost Production Capacity In Arabian Gulf

Saudi Aramco’s Berri Gas Plant (photo courtesy of Saudi Aramco)

Saudi Aramco plans to boost the Marjan and Berri fields’ production capacity by 550,000 barrels per day of crude oil and 2.5 Bcfd (70 x 106 m3/d) of gas. Saudi Arabia’s national petroleum and natural gas company has awarded 34 contracts worth a total of US$18 billion for the engineering, procurement, and construction (EPC) of the Marjan and Berri Increment Programs.

The Marjan Increment Program is an integrated development project for oil, associated gas, non-associated gas, and cap gas from the Marjan offshore field, located off Saudi Arabia’s east coast. It includes a new offshore gas oil separation plant and 24 offshore oil, gas, and water injection platforms. The company also plans to expand its Tanajib onshore oil facilities and construct a new gas plant, to include gas treatment and processing, natural gas liquids recovery and fractionation, and gas compression facilities. A cogeneration facility will be developed, in addition to a water desalination facility and new transfer pipelines. The offshore oilfield development project aims to increase the Marjan Field production by 300 million bpd and process 2.5 Bcfd of gas.

Through the Berri Increment Program, the company plans to add 250,000 barrels of light crude per day from the offshore oilfield. The planned facilities will, upon completion, include a new gas oil separation plant in Abu Ali Island to process 500,000 barrels of Arabian Light Crude Oil per day, and additional gas processing facilities at the Khursaniyah gas plant to process 40,000 barrels of associated hydrocarbon condensate. The program includes a new water injection facility, two drilling islands, 11 oil and water offshore platforms and nine onshore oil production and water supply drill sites.

“These two programs will significantly enhance Saudi Aramco’s oil production and gas processing capabilities, both strengthening our position as the leading integrated energy supplier and meeting growing long-term demand for petroleum,” said Saudi Aramco President and CEO Amin H. Nasser. “These investments will support our continued focus on employing best-in-class technologies, well completion, and reservoir management practices. It will enable Saudi Aramco to further reduce the carbon intensity of our crude oils, supporting our strategy of reducing emissions while providing energy to those who need it.”

Among the contract recipients, Saipem S.p.A., an Italian oil and gas industry contractor, was awarded two EPC contracts worth more than US$3.5 billion. Saipem’s Onshore E&C division will develop the land facilities tied to Saudi Aramco’s Berri and Marjan gas fields in the Arabian Gulf. According to Saipem, its contracts include expanding gas facilities for the Berri Field by installing new process units at the Abu Ali oil-gas separation plant on Abu Ali Island, located north of Saudi Aramco’s Ras Tanura refinery, and at the Khursaniyah gas treatment plant. For the Marjan Field, Saipem will construction a gas treatment unit and a unit to recover acid gases for sulfur production.

McDermott International Inc., a US-based multinational engineering, procurement, construction, and installation company, was awarded a US$1.5 billion contract for the fabrication of three tie-in platforms and seven wellhead platforms with a total weight of more than 61,400 tons (55,700 tonnes). The contract also includes the installation of subsea trunk lines and in-field pipelines in excess of 330 miles (540 km), and the laying of more than 55 miles (90 km) of subsea cables.

According to McDermott, fabrication will take place at the company’s Batam, Jebel Ali and Dammam yards. The engineering phase is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022.

Hyundai Engineering & Construction, a major construction company in South Korea, won two contacts worth a combined US$2.7 billion in support of the Marjan Increment Program. The first contract involves expanding an existing gas-oil separation facility. The second will involve constructing gas and crude oil-processing facilities.