Saudi Aramco is expected to soon select the contractor responsible for implementing the onshore infrastructure component of its flagship Safaniya offshore field expansion project, according to an official release. The expansion plan, centered on the Safaniya field, which currently produces about 1.3 million barrels of crude oil per day. The program is expected to involve up to 10 offshore and onshore Engineering, Procurement, Installation and Construction (EPCI) contracts with a total value of more than $10 billion and is a key part of Saudi Aramco's strategy to boost production.
Saudi Aramco is currently in the final stages of screening winning candidates for two large onshore engineering, procurement and construction (EPC) contracts, which are expected to have a combined value of $5 billion. Within the next few weeks, the company expects to complete the award of these two onshore EPC packages.
The expansion project includes the construction of at least four key gathering platforms, 29 wellhead platforms, 22 water injection platforms, and an offshore accommodation facility. It also includes the installation of subsea pipelines and composite cables as well as the upgrading of existing facilities.
Indian engineering giant Larsen & Toubro has been the preferred contractor for an initial contract involving the construction of oil and gas separation facilities. And South Korea's Hyundai Engineering & Construction is expected to be awarded a second EPC contract. China National Offshore Oil Engineering Corporation (COOEC) and McDermott are also closely monitoring developments in this major field expansion program, although their exact involvement has yet to be determined.
The latest news shows that Saudi Aramco has just announced that it will maintain its maximum sustainable production at 12 million barrels per day (bpd), as directed by the Department of Energy. This indicates the company's decision not to raise its maximum sustainable production (MSC) further to 13 million bpd. Saudi Aramco also plans to update its capital expenditure budget to reflect the impact of this huge expansion program on the company's finances when it releases its full-year 2023 results in March.