The Saudi Arabian Oil Company, also known as Saudi Aramco, inked 34 contracts with local and international companies with a total value worth $18 billion.
The contracts aim at boost production capacity by 550,000 barrels per day (bpd) at its Marjan and Berri oilfields, in addition to increasing gas output by 2.5 billion cubic feet per day, according to Aramco’s statement on Tuesday.
The Saudi state producer noted that the deals target sustaining the company’s production capacity at 12 million bpd.
“These two programmes 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,” Amin Nasser, CEO of Aramco, commented.
He added that the newly signed contracts will help in reducing the “carbon intensity” of crude as well as reducing emissions.
Increasing production capacity at Marjan, an offshore field, and Berri, which lies partly onshore, comes along with the kingdom’s vision to boost its spare capacity.
Around 90 companies put in bids for the packages associated with the fields, including 16 Saudi companies, which accounted for half of those chosen, to execute the projects.
The Marjan increment programme includes a new offshore gas-oil separation plant as well as 24 offshore oil, gas and water injection platforms.
It is worth noting that Saudi Aramco plans to expand its oil facilities associated with its onshore Tanajib field, with the construction of a new gas plant, a gas treatment, processing, natural gas liquids and fractionation, and compression facilities.
Moreover, a “cogeneration facility” is also expected to be developed in addition to a water desalination plant and new transfer pipelines, according to the statement.
The total capacity of Marjan is expected to reach 300,000 bpd of Arabian medium crude, 2.5 billion cubic feet per day of gas and 360,000 bpd of natural gas liquids.
The company intends to add a new gas-oil separation plant on Abu Ali island to process up to 500,000 bpd of Arabian light crude, as well as additional gas processing facilities at the Khursaniyah gas plant to process 40,000 bpd of associated condensate.