Italy’s Saipem has landed an engineering, procurement and construction contract worth $750 million from Saudi Aramco that involves work on several kilometres of pipeline required for its giant Jafurah gas project.
Saipem has won a key pipeline project from Aramco that involves the “construction of a hydrocarbon collection system and the transportation of gas and condensate to the new Jafurah plant, in the Eastern Province of Saudi Arabia.”
The project also involves “building a system to transport water associated with the separation of the treated gas,” the company said on Tuesday.
Saipem will be responsible for constructing about 835 kilometres of pipeline.
Upstream understands the contract awarded to Aramco involves Package-4 of the unconventional gas development that comprises upstream pipelines and tie-in systems.
Saipem chief executive Francesco Caio said the award consolidates a "long-standing relationship" with the Saudi Arabian state-owned giant and Saipem's "strategic positioning in the Middle East".
On Monday, Aramco announced the award of $10 billion worth of contracts for the Jafurah unconventional gas development, where it aims to produce 2 billion cubic feet per day of gas by 2030.
Aramco described the awards of “16 subsurface and engineering, procurement and construction contracts valued at $10 billion for the Jafurah gas plant and gas compression facilities, as well as infrastructure and related surface facilities”.
Aramco said the “contracts were awarded to domestic and international service companies and involve several projects to enable the development of subsurface and surface components”.
However, Aramco did not reveal the companies that have landed the prizes, now known to include Saipem.
The vast Jafurah site is thought to be the largest known free gas field in the kingdom and a key component of Aramco’s strategy to ramp up unconventional gas output, in line with its energy-transition plans.
With an estimated 200 trillion standard cubic feet of gas in place, the Jafurah basin hosts the largest liquid-rich shale gas play in the Middle East, Aramco said.
The Jafurah field is spread across a length of 170 kilometres and a width of 100 kilometres between Ghawar — the world’s largest conventional onshore oilfield — and the Saudi coast.
- Around the world with Upstream - 25 years keeping readers abreast of a changing oil and gas sector
- Oil prices sink, reversing gains as Saudi TV reports looming output rise
- ‘No walk in the park’: Saipem to shut two yards and scrap three vessels in 2022
- 'Partner of choice': Qatar banks on LNG amid clean energy switch
- Middle East energy giants keeping capacity in focus