Saudi Aramco lets Karan gas contracts

Saudi Aramco has awarded contracts to Petrofac and South Korea's Hyundai Engineering & Construction to develop Karan gas field, which is expected to start production in mid-2011.

Mar 2nd, 2009

Uchenna Izundu
OGJ International Editor

LONDON, Mar. 2 -- Saudi Aramco has awarded contracts to Petrofac Ltd. and South Korea's Hyundai Engineering & Construction Co. Ltd. to develop Karan gas field, which is expected to start production in mid-2011. The values of the contracts were not disclosed.

Petrofac was awarded an engineering, procurement, and construction contract to design the Karan utilities and a 150-Mw cogeneration unit. The field, in the Persian Gulf, will produce 1.8 bcfd of sour gas, which will be processed at the Khursaniyah gas plant, and a 47-km gas pipeline, 50 km northwest of Jubail in Saudi Arabia's Eastern province.

Hyundai will start building the plant this month. It will include gas processing trains consisting of gas handling, sweetening, dehydration, acid gas enrichment, and supplementary propane refrigeration. This package also will include the inlet and utilities facilities to support each processing gas train.

Petrofac will also upgrade the plant's process controls, electrical systems, and support facilities. This is its first contract with Aramco.

According to the Saudi daily newspaper al-Watan, costs are reported to have dropped by at least 20% from previous estimates that placed it at $5 billion.

Karan, a key project to help meet the kingdom's growing gas demand, is its first offshore nonassociated gas project.

Contact Uchenna Izundu at uchennai@pennwell.com.

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