Aramco awards $18bn contracts to raise Marjan and Berri oilfields output capacity

Saudi Aramco has awarded 34 contracts with a total value of $18 billion for the engineering, procurement and construction of the Marjan and Berri increment programs. The company plans to boost the Marjan and Berri fields’ production capacity by 550,000 barrels per day of Arabian Crude Oil and 2.5 billion standard cubic feet a day (BSCFD) of gas.

“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 Amin H. Nasser, president and CEO of Saudi Aramco. “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.”

More than 90 companies and institutions were invited to bid on the packages, and 16 Saudi and international companies were chosen in the fields of engineering, supply and construction. Saudi companies make up 50 percent of the awarded contracts and they are high- caliber firms that have proven their ability to handle complex projects.

Contractors working on these projects are required to maximize the procurement of material and equipment from local suppliers and manufacturers to help achieve Saudi Aramco’s In-Kingdom Total Value Add Program (IKTVA) goals, which aim to increase the company’s locally-sourced goods and services to 70 percent by 2021.

The projects are expected to create thousands of direct and indirect jobs, supporting Saudi Aramco's efforts to localize and create new job opportunities.

The Marjan increment program is an integrated development project for oil, associated gas, non-associated gas and cap gas from the Marjan offshore field.

This development program 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, NGL 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 MBCD of Arabian Medium Crude Oil, process 2.5 BSCFD of gas, and produce an additional 360 MBCD of C2+NGL.

Through the Berri increment program, the company plans to add 250,000 barrels of Arabian 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 9 onshore oil production and water supply drill sites.