February 1, 2018 / 2:18 PM / 8 months ago

Saudi Aramco to launch construction tenders for oilfields expansion this year

KHOBAR, Saudi Arabia (Reuters) - State oil producer Saudi Aramco is expected to launch a tender in July to build facilities to expand its Marjan oilfield while another tender for the Berri oilfield expansion is expected by the third or fourth quarter of this year, industry sources said.

The planned projects are further proof that Saudi Aramco is pushing ahead with oil investments to maintain capacity while also meeting domestic demand for gas to fuel industrial growth.

International engineering and construction firms have expressed interest in bidding to build oil and gas facilities at Marjan oilfield whose development is expected to cost more than $10 billion.

The expansion will increase the capacity of Marjan, currently at 500,000 barrels per day, by 300,000 bpd of Arab medium crude.

A new gas plant in Tanajib which will handle 2.7 billion standard cubic feet per day is due to be built and the capacity of the NGL fractionation plant at Wasit will expand too.

As for Berri, development could cost between $6-8 billion. Aramco plans to raise capacity at the field by 250,000 bpd of Arab light and raise production of associated gas.

The construction packages for Marjan and Berri are expected to be awarded next year and both projects are expected to be completed in 2022.

Saudi Aramco did not immediately have a comment.

Reporting by Reem Shamseddine; Editing by Adrian Croft

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