DUBAI: Saudi Arabia’s oil giant Aramco has signed $10 billion worth of contracts to kickstart the development of its massive Jafurah unconventional gas field.
The company said it signed 16 subsurface and Engineering, Procurement, and Construction contracts with local and international companies, including US-based Schlumberger and Halliburton.
Other companies that signed contracts with Aramco include Baker Hughes, NESR, Saudi Taqa, Sinopec, Larsen and Toubro, and Saipem.
A total of $68 billion is expected to be spent over the first 10 years of the project’s development, Aramco said, as it anticipates more than $100 billion total lifecycle investment.
By 2030, the Saudi oil giant expects the Jafurah site to produce up to two billion standard cubic feet per day of sales gas, 418 million scfd of ethane, and around 630,000 barrels per day of gas liquids and condensates.
The Italian-based Saipem company will build a system to transport water associated with the separation of the treated gas. The contract has a total value of approximately $750 million.
The deal includes the engineering, supply of materials, construction, and commissioning of approximately 835 km of pipelines for the transportation of gas, condensate and production water.
“The award of this new project from Aramco consolidates a long-standing relationship and Saipem's strategic positioning in the Middle East. The agreement confirms the trust and appreciation of our customers in the project management capacity and in the cutting-edge engineering and technological services that Saipem is able to offer,” said Francesco Caio, Saipem's CEO.