Aramco Awards Deals Worth $10B

Aramco Awards Deals Worth $10B
The deals comprise 16 subsurface and engineering, procurement and construction contracts.

The Saudi Arabian Oil Company has announced that it has awarded contracts worth $10 billion for the Jafurah unconventional gas field development.

The deals comprise 16 subsurface and engineering, procurement and construction (EPC) contracts for the Jafurah Gas Plant and gas compression facilities, as well as infrastructure and related surface facilities, Aramco outlined. These contracts were awarded to domestic and international service companies and involve several projects to enable development of subsurface and surface components of the Jafurah program, Aramco said.

Aramco, which expects total overall lifecycle investment at Jafurah to exceed $100 billion, noted that the project is a key component of its long-term strategy. Jafurah is the largest non-associated gas field in the Kingdom of Saudi Arabia, Aramco highlighted.

“The development of Jafurah will positively contribute to the Kingdom’s energy mix and it has been made possible thanks to close co-operation between more than 17 different agencies,” Abdulaziz bin Salman Al Saud, the Minister of Energy for the Kingdom of Saudi Arabia, said.

“The government is committed to the empowerment of national companies such as Aramco and no other energy company in the world is empowered to the same extent by the state, or by the Ministry of Energy which oversees the concession to develop the Kingdom’s hydrocarbon resources,” he added.

Amin H. Nasser, Aramco’s president and CEO, said, “this is a pivotal moment in the commercialization of Saudi Arabia’s vast unconventional resources program”.

“It is a breakthrough that few outside the Kingdom thought was possible, and which has positive implications for energy security, economic development and climate protection,” he added.

Nasir K. Al-Naimi, Aramco’s upstream senior vice president, said, “the development of Jafurah is a game-changer for our unconventional resources program”.

“It will be one of the most modern, cost-efficient shale development schemes in the industry and observe the highest environmental and safety standards. Jafurah will be a key enabler of our ambitions moving forward,” he added.

Saipem recently revealed that it had signed a new EPC deal, worth approximately $750 million, with Aramco on the Jafurah development program in Saudi Arabia.

The Jafurah basin hosts the largest liquid-rich shale gas play in the Middle East, with an estimated 200 trillion standard cubic feet of gas in place, Aramco highlights. Production of natural gas at Jafurah is expected to ramp up from 200 million standard cubic feet per day in 2025 to reach a sustainable gas rate of two billion standard cubic feet per day of sales gas by 2030.

Jafurah is anticipated to contribute to Saudi Arabia’s goal of producing half of its electricity from gas and half from renewables as the Kingdom pursues its own 2060 net-zero target. Through its unconventional gas program at the Jafurah, North Arabia and South Ghawar fields, Aramco said it expects to create more than 200,000 direct and indirect jobs. 

In February last year, Aramco announced the regulatory approval of the development of the Jafurah unconventional gas field. The company noted at the time that the plan was subject to Aramco’s usual governance process.

Aramco manages the Kingdom’s proved reserves of 336.87 billion barrels of oil equivalent, the company’s website highlights. Aramco has a total workforce of more than 70,000 people, according to its site.

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