Oil and gas major Saudi Aramco has signed agreements with several oil and gas service contractors for projects in Saudi Arabia. The eight deals are worth a combined USD4.5 bn.
Three agreements were signed with Técnicas Reunidas as part of Aramco’s gas compression programme. The project will improve and sustain gas production from Haradh and Hawiyah fields for the next 20 years and will bring an additional 1 bn standard cu ft per day online.
A deal was signed with Saipem for the Hawiyah Gas Plant (HGP) expansion project. This involves the construction of additional gas processing facilities to process raw sweet gas.
Aramco also signed a deal with China Petroleum Pipelines covering the free flow pipeline contract for Haradh and Hawiyah; an engineering and project management services deal was signed with Jacobs Engineering for the Zuluf field development plan; Abu Dhabi-based National Petroleum Construction Company (NPCC) will execute the pipeline and trunk line project at the Safaniyah field; and the slipover platforms and electrical distribution platform project at the Safaniyah field will be performed by McDermott Middle East.
Saudi Aramco president and ceo, Amin H. Nasser, said: “Investments like these help secure Saudi Aramco’s preeminent position as a reliable supplier of energy domestically and to the world. They also reflect our concerted effort, as stated in Saudi Vision 2030, to diversify our economy, promote local manufacturing, support a sustainable environment, and strengthen our business and investment climate with the domestic private sector through fruitful international partnerships.”
CapProCon reported in July that Nasser, speaking at the World Petroleum Congress in Istanbul, said the role of oil as a vital source of energy is expected to continue in the long term, despite the growth of alternatives.
Nasser predicted a doubling in size of the world economy over the next 25 years, plus an additional two billion energy consumers. This will result in a lengthy energy transition that alternative sources such as renewables cannot adequately support.
“Saudi Aramco plans to invest more than USD300 bn over the coming decade to reinforce our preeminent position in oil, maintain our spare oil production capacity and pursue a large exploration and production programme centered on conventional and unconventional gas resources,” he stated at the time.