2005 News Story

Saudi Aramco signs contracts for two mega-projects

Saudi Aramco today signed contracts on two mega-projects: the Khursaniyah Oil and Gas Program, and the Hawiyah Natural Gas Liquids (NGL) Recovery Program, both in the Eastern Province. The first is for development of the oil and gas production facilities at three oilfields near Jubail Industrial City; by the end of 2007, they are expected to have a capacity of 500,000 barrels of crude oil a day. The second is for additional production of ethane and natural gas liquids at the Ghawar field and expansion of the Ju'aymah Gas Fractionation Plant near Ras Tanura; completion is expected early in 2008.

The first mega-project involves Snamprogetti of Italy, for works including construction of a central gas-oil separation plant; and a consortium of Bechtel Overseas of London and Technip of Rome, for ethane and NGL recovery. The second mega-project involves the JGC Corporation of Japan, and Tecnicas Reunidas of Spain, as well as Italy’s Snamprogetti.

Support contracts were signed with local contractors: General Telecom & Engineering (GTE), Modern Arab Construction (MAC) and National Engineering Services and Marketing Agency (NESMA).