Aramco gas deal with Samsung worth $2.8bn
Riyadh, March 21, 2011
Deals won last week by Samsung Engineering to build Saudi Aramco's natural gas liquids (NGL) project in Shaybah oilfield are worth $2.76 billion, industry sources said on Monday.
Last Wednesday, Aramco awarded South Korea's Samsung Engineering the four construction packages, which make up for the construction of the project. It did not give the value for the deals.
Industry sources have estimated the cost of the project to range between $5 billion-$6 billion. Samsung on Monday signed the contracts with Aramco, sources added.
It will build the project's inlet and gas treatment facility, NGL recovery and utility facilities, a cogeneration plant and will upgrade gas handling facilities from existing Shaybah gas oil separation plants (GOSPs).
The project will process 2.4 billion cubic feet per day (cfd) of low-sulphur sweet gas from Saudi Arabia's southeastern Shaybah oilfield, sending on 264,000 barrels-per-day (bpd) of NGLs for fractionation at a processing plant.
Shaybah is one of two new Aramco mega-projects to help meet gas demand rising at 5-6 percent annually in the world's largest oil exporter.
The other is Wasit, to process gas from the non-associated Arabiyah and Hasbah offshore gas fields. Aramco awarded Wasit in January with deals were also lower than Aramco's budget.
Both plants are expected to be completed in 2014. - Reuters