This week in MEOG we look at the award of more contracts as upstream momentum continues.

Japan’s JGC Corp. announced that it has been awarded a contract by Saudi Aramco to oversee the engineering, procurement and construction (EPC) of facilities to support the expansion of the Zuluf oilfield.

The deal, which is understood to be valued at $2-2.5bn, was first reported earlier in the month, but it was only confirmed by JGC on May 30.

The contract will see JGC lead the construction of the Zuluf Arabian Heavy (AH) Increment Central Processing Facilities, which comprise core onshore gas-oil separation plant (GOSP) and utility facilities, including those for water injection. Aramco anticipates that the Zuluf Crude Increment will add 600,000 barrels per day of AH output by 2026, with the field currently producing 550,000-600,000 bpd of Arabian Medium (AM) both onshore and offshore facilities.

JGC said that it would carry out work on the onshore GOSP and utility facilities simultaneously, inferring that this was an influencing factor in Aramco’s decision.

Meanwhile, BP has extended a contract to local firm Abraj Energy Services for land rig services in its Block 61 concession in Oman.

The contract was originally awarded by BP Oman in 2014 with a value of $330mn and covered three drilling rigs for the full field development of the Khazzan gas field. The latest extension is for another two years.

BP has developed the 3,700-square km Block 61 in two stages – Khazzan came into production in 2017 and produces 28mn cubic metres per day of gas; Ghazeer came on stream in 2020, adding another 14 mcm per day. According to a joint statement, Abraj and BP completed the first well stimulation in the concession in December 2021.

Abraj, which was established in 2006, owns 19 land rigs and is the drilling unit of Oman’s state oil firm OQ, formerly Oman Oil Co. (OOC).

©2022 bne IntelliNews , source Magazine