RIYADH: Saudi Arabia’s oil company Aramco has awarded $18 billion in contracts to expand oil and gas capacity at two of its fields, with Saudi companies being granted half of the awarded contracts.
Aramco said in a statement on Tuesday it had awarded 34 contracts for engineering, procurement and construction at the Majran and Berri offshore fields to expand crude oil production by 550,000 barrels per day and gas by 2.5 billion standard cubic feet per day.
Aramco says 16 local and international companies were chosen out of 90 invited to bid on the packages.
Contractors working on the projects will be required to maximize their purchases of material and equipment from Saudi suppliers and manufacturers. Aramco says the projects are also expected to create thousands of local jobs.
“These two programs will significantly enhance Saudi Aramco’s oil production and gas processing capabilities, both strengthening our position as the leading integrated energy supplier and meeting growing long-term demand for petroleum,” said Amin H. Nasser, president and CEO of Saudi Aramco.
“These investments will support our continued focus on employing best-in-class technologies, well completion, and reservoir management practices. It will enable Saudi Aramco to further reduce the carbon intensity of our crude oils, supporting our strategy of reducing emissions while providing energy to those who need it,” he added.
The Marjran program is an integrated development project for oil, associated gas, non-associated gas and cap gas from offshore fields, while the Berri increment program plans to add 250,000 barrels of Arabian Light Crude per day from its offshore oilfield.