Deal Signed for Shaybah Pipeline

Saudi Aramco recently signed a contract with construction contractor Stroytransgaz (Saudi Arabia) to begin construction on the new SHABAB-2 Pipeline Capacity Expansion Project.

Ali A. Al-Ajmi, vice president of Project Management, signed on behalf of Saudi Aramco. Evegny A. Laurentiev, senior vice president of Stroytransgaz, signed on behalf of the contractor. It is Stroytransgaz's first contract with Saudi Aramco, as well as its first in Saudi Arabia.

"We hope this will be the beginning of a new fruitful partnership with a major player in the market," said Al-Ajmi.

The existing pipeline transports oil from Shaybah. As part of the Shaybah Expansion Program, the project involves the construction of a 217-kilometer pipeline, SHABAB-2, connecting the new Shaybah GOSP-4 to the existing pipeline, and adding 50 percent to the existing capacity.

In attendance at the signing on March 31 were Majdi M. Tamimi, manager of Central and Western Region Projects; Osama A. Junaid, senior project manager from Shaybah Expansion Projects; and Contracting administrator Mohammed H. Belushi.

Also attending were Konstantin P. Dudarev, general manager, and Leoinid V. Bokhanovskiy, senior vice president, both of Stroytransgaz.

Mobilization will begin this month and completion is planned for June 2008.