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Aramco signs contracts for megaprojects

By OGJ editors

HOUSTON, Mar. 21 -- Saudi Aramco, Dhahran, has signed contracts for two major projects in Saudi Arabia to develop oil and gas fields in the Eastern Province and raise the kingdom's gas processing capacity.

The work includes development of oil and natural gas production facilities for the three-field Khursaniyah program and construction at Hawiyah of what the company describes as "the world's largest NGL [natural gas liquids] processing plant," which will recover ethane and NGL from 4 bscfd of sales gas.

Khursaniyah project
Eni SPA subsidiary Snamprogetti SPA of Italy will build production facilities for the Khursaniyah program. The contractor will construct a central gas-oil separation plant and wet crude handling facilities to process crude from onshore Abu Hadriya, Fadhili, and Khursaniyah oil fields near Jubail Industrial City. Snamprogetti also will install a cogeneration plant, compression facilities for the gas gathering system, and crude stabilization and water injection facilities. The fields are expected to produce a total of 500,000 b/d of crude oil by yearend 2007 (OGJ, Apr. 12, 2004, p. 18).

A consortium of Bechtel Overseas, London, and Technip Italy, Rome, was selected for the Khursaniyah gas plant project. The work includes construction of two trains of gas conditioning and ethane and NGL recovery with a total capacity of 1 bscfd of gas. The facilities will produce 550 million scfd of sales gas, 240,000 b/d of ethane and NGL, and 1,800 tonnes/day of sulfur.

Hawiyah NGL recovery
The Hawiyah NGL recovery program will produce 310,000 b/d of ethane and NGL products through the proposed NGL plant near Ghawar oil field and expansion of the Ju'aymah gas fractionation plant near Ras Tanura when they are completed in early 2008.

Japan's JGC Corp. will construct the Hawiyah NGL plant and related facilities, consisting of three NGL recovery trains, product surge and shipping facilities, utilities, and tank and process control system.

Snamprogetti will carry out work related to gas treating and compression facilities that include inlet distribution, two gas treating trains, sales gas compression, and electrical system and support facilities.

Spain's Tecnicas Reunidas, under a separate contract, will expand the Ju'aymah gas fractionation plant by constructing a fourth train to fractionate 270,000 b/d of ethane and NGL and 100,000 b/d of propane and NGL.

In awarding the contracts, Saudi Aramco emphasized Saudi participation in the engineering and construction phases of the program. Saudi employment requirements have been included as part of project requirements, and Kingdom-based engineering firms will be employed in the design phase.

Contracts for communication, plant infrastructure facilities, and temporary camp and catering services also were awarded to three local contractors: General Telecom & Engineering, Modern Arab Construction, and National Engineering Services & Marketing Agency.


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