Frontrunners emerge for 11 Aramco offshore tenders

29 January 2023

Saudi Aramco is understood to be preparing to award 11 offshore engineering, procurement, construction and installation (EPCI) contracts, according to sources.

Long-Term Agreement (LTA) contractors submitted bids for the Contracts Release and Purchase Order (CRPO) contracts in November and December last year, MEED earlier reported.

The following LTA entities have emerged as frontrunners for the following orders:

  • CRPO 97 – National Petroleum Construction Company (NPCC) [UAE]
  • CRPO 98 – Larsen & Toubro Energy Hydrocarbon (LTEH) [India] / Subsea 7 [UK]
  • CRPO 99 – Hyundai Heavy Industries [South Korea]
  • CRPO 100 – NPCC
  • CRPO 101 – McDermott [US]
  • CRPO 117 – L&THE/Subsea7
  • CRPO 118 – Saipem [Italy]
  • CRPO 119 – Saipem
  • CRPO 120 – Saipem
  • CRPO 121 – L&THE/Subsea7
  • CRPO 122 – NPCC

Sources say that each of the winning contractors could win about $1bn worth of work. Aramco declined to comment on MEED’s request for information on the CRPO tenders.

Offshore spending

Among the contracts to be awarded are four orders that cover the upgrade of tie-in platforms and installation of production deck modules, jackets, pipelines and subsea cables at the Zuluf offshore hydrocarbons development.

CRPOs 98-101 represent the next big development phase of the Zuluf oil and gas field. They follow the award of five offshore EPCI packages in December 2021, worth about $4.5bn, and two main onshore packages in May 2022, estimated to be worth about $3.5bn, for the first phase of the Zuluf increment project.

ALSO READ: Aramco paces ahead with upstream projects

The EPCI scope of work on the 11 CRPO contracts is:

  • CRPO 97 – Installation of structures at Abu Safah:
    • Two jackets at Abu Safah
    • Three production deck modules (PDMs)
    • Pipeline replacement
    • Associated facilities

       
  • CRPO 98 – Upgrade of AM crude platforms at Zuluf tie-in platform (ZTP) 7:
    • Upgrade of five PDMs
    • Upgrades of four Zuluf tie-ins
    • Demolition works
    • Installation of slipover jackets
    • Laying of associated subsea pipelines and cables

       
  • CRPO 99 – Upgrade and installations at ZTP 5:
    • Upgrade of three PDMs
    • Installation of a slipover PDM
    • Installation of a new PDM
    • Upgrade of ZTP 5

       
  • CRPO 100 – Upgrade and installations at ZTP 3:
    • Upgrade of two PDMs
    • Installation of seven slipover PDMs
    • Installation of two 16-well PDMs
    • Installation of auxiliary platforms
    • Upgrade of ZTP 3

       
  • CRPO 101 – Supply of structures at Zuluf:
    • Provision of 22 15 kilovolt (kV) cables/pipelines covering a total length of 112 kilometres (km)
    • Provision of eight cables/pipelines covering a total length of 23km

       
  • CRPO 117 – Installation of structures at Marjan:
    • Three PDMs and pipeline at Marjan tie-in platform

       
  • CRPO 118 – Installation of structures at Marjan:
    • Three PDMs and pipeline at Marjan field development

       
  • CRPO 119 – Installation of structures at Marjan:
    • Four PDMs and pipeline at Marjan field development

       
  • CRPO 122 – Installation of structures at Safaniya:
    • Thirteen jackets at Safaniya

       
  • CRPO 120 – Installation of structures at Hasbah:
    • One PDM and pipeline at Hasbah field development

       
  • CRPO 121 – Installation of structures at Manifa:
    • Twelve jackets at Manifa

       
  • CRPO 122 – Installation of structures at Safaniya:
    • Thirteen jackets at Safaniya

High oil and gas prices significantly boosted Aramco’s profitability in 2022, resulting in considerable shareholder dividends. Robust financial performance has therefore led Aramco to kickstart a period of increased capital expenditure on upstream projects.

Both Saudi Energy Minister Prince Abdulaziz bin Salman and Aramco’s president and CEO Amin Nasser have emphasised the state enterprise’s mandate to raise its oil production capacity to 13 million barrels a day by 2027, and increase gas production by 50 per cent by the end of this decade.

Aramco has awarded key EPC projects in the past two years to achieve these goals and has been issuing tenders for strategic greenfield and brownfield works, particularly since the third quarter of 2022.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10551580/main.jpg
Indrajit Sen
Related Articles
  • Saudi Arabia evaluates 2GW energy storage bids

    23 October 2024

    National Grid Saudi Arabia, a wholly-owned subsidiary of Saudi Electricity Company (SEC), is evaluating bids for the contract or contracts to supply battery energy storage systems (bess) with a total combined capacity of up to 2,500MW.

    According to a source familiar with the project, the SEC entity solicited bids directly from equipment manufacturers, which include China's Sungrow, Hithium and Huawei Technologies, among others, to supply batteries, which will be installed by an engineering, procurement and construction (EPC) contractor.

    It is understood that SEC has tendered the  EPC package or packages separately.

    MEED previously reported that the planned facilities, each with a capacity of 500MW or roughly 2,000 megawatt-hours, are located in or within the proximity of the following key cities and load centres:

    • Riyadh
    • Qaisumah
    • Dawadmi
    • Al-Jouf
    • Rabigh

    The main applications for the planned bess facilities include load shifting, black start, frequency regulation and voltage support.

    They are envisaged to replace part load operation of existing power plants by charging and discharging electricity according to the system load variations and primary and secondary reserves, among other potential applications.

    In August, National Grid SA awarded the EPC contracts for three energy storage systems to Riyadh-based investment group Algihaz Holding.

    The projects are located in Najran, Madaya and Khamis Mushait.

    According to an industry source, the contracts are valued at more than $800m.

    Surging growth

    The overall capacity of deployed battery energy storage systems globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, according to GlobalData.

    The global information services provider cited Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.

    Carmakers Tesla, Volkswagen, Stellantis, General Motors, Mitsubishi Motors and Hyundai were identified as the key end markets for battery products so far.

    GlobalData expects battery energy storage deployment to increase "due to a large number of countries opting for battery storage systems to enhance their power sector transformation".

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12779739/main.gif
    Jennifer Aguinaldo
  • Saudi Arabia receives 4.5GW solar and wind prequalifications

    22 October 2024

     

    On 22 October, utility and renewable energy developers submitted their statements of qualifications (SOQs) for the contracts to develop five renewable energy independent power projects (IPPs) in Saudi Arabia.

    Saudi Arabia's principal buyer, Saudi Power Procurement Company (SPPC), issued the prequalification request for the IPPs making up the sixth round of the kingdom's National Renewable Energy Programme (NREP) on 29 September.

    Firms that are understood to have submitted SOQs include international developers such as Japan's Marubeni and Jera; France's EDF Renewables, Engie and TotalEnergies Renewables; as well as Chinese and local utility developers.

    The projects, comprising four solar photovoltaic (PV) IPPs and one wind IPP, will have a total combined capacity of 4,500MW.

    The following schemes comprise the NREP's sixth round:

    • 1,500MW Dawadmi wind IPP (Riyadh)
    • 1,400MW Najran solar PV IPP (Najran)
    • 600MW Samtah solar PV IPP (Jizan)
    • 600MW Al-Darb solar PV IPP (Jizan)
    • 400MW Al-Sufun solar PV IPP (Hail)

    SPPC is responsible for the pre-development, tendering and subsequent offtaking of the energy from the projects.

    US/India-based Synergy Consulting is providing financial advisory services to SPPC for the NREP sixth-round tender. Germany's Fichtner Consulting and US-headquartered CMS are providing technical and legal consultancy services, respectively.

    SPPC revealed the following lowest and second-lowest bidders for the contracts to develop four solar PV projects under the fourth round of the NREP on 21 October.

    2,000MW Al-Sadawi solar IPP (Eastern Province)

    • L1: Abu Dhabi Future Energy (UAE)/Korea Electric Power Corporation (Kepco, South Korea)/GD Power Development (China): $c1.29 a kilowatt-hour (kWh)
    • L2: SPIC Huanghe Hydropower Development (China)/EDF Renewables (France): $c1.31/kWh

    Al-Masaa solar IPP (Hail): 1,000MW

    • L1: SPIC/EDF Renewables (France): $c1.36/kWh
    • L2: AlJomaih Energy & Water (local) / TotalEnergies Renewables (France): $c1.40/kWh

    Al-Hinakiyah 2 solar IPP (Medina): 400MW

    • L1: SPIC/EDF: $c1.51/kWh
    • L2: Masdar/Kepco/Nesma: $c1.57/kWh

    Rabigh 2 solar IPP (Mecca): 300MW

    • L1: AlJomaih Energy & Water / TotalEnergies Renewables: $c1.78/kWh
    • L2: Masdar/Kepco/Nesma: $c1.89/kWh

    MEED previously reported that SPPC plans to award the NREP round-five contract before the end of the year.

    Photo: Pixabay

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12774001/main0411.jpg
    Jennifer Aguinaldo
  • Oman awards $186.5m sewer network packages

    22 October 2024

    Oman's Nama Water Services has awarded several contracts with a total combined value of $186.5m for the construction and development of packages of a sewer network catering to Muscat.

    The B7A contract to build a sewer network comprising a main trunk sewer and pumping station in South Azaibah in the Muscat Governate has been awarded to the local United Gulf Construction Company, which offered to build the project for $54.5m.

    Nama Water Services tendered the contract in September last year. In addition to the supply and installation of pumping stations, the scope includes the construction of a 3.5-kilometre (km) gravity sewer network and property and house connection chambers.

    Nama Water Services awarded a second contract – C13 Package C4 – worth $30m to the local firm Target. The main scope includes the construction of a 16km gravity sewer network with diameters ranging from 200 millimetres (mm) to 600mm in Oman's Seeb catchment. It also includes the construction of about 265 gravity sewer manholes.

    Cairo-headquartered Arab Contractors won a $35m contract to construct a sewer network at the C5A and C5B areas in the Aseeb catchment in Muscat.

    C5A involves the construction of a 35km gravity sewer network with diametres of 200mm-900mm and 420 gravity sewer manholes. 

    C5B entails the construction of a 32km gravity sewer network with similar diametres to C5A, and a further 375 sewer manholes.

    Nama Water Services awarded a fourth contract to Target. Valued at $67m, it involves the construction of sewer network B7D, as part of the Bausher sewer infrastructure at Al-Ansab in Oman.

    The main project scope involves the construction of a 75km gravity sewer network, 103km of property and house connection chambers and a pump station.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12772678/main.jpg
    Jennifer Aguinaldo
  • Team offers $c1.29/kWh for 2GW Sadawi solar IPP project

    21 October 2024

    A developer team that includes UAE-based Abu Dhabi Future Energy Company (Masdar) has submitted the lowest bid for a contract to develop the 2,000MW Al-Sadawi solar independent power project (IPP) in Saudi Arabia.

    The consortium, which includes South Korea's Korea Electric Power Corporation (Kepco) and China's GD Power Development, submitted a levelised cost of electricity of hals 4.847 ($c1.29) a kilowatt-hour (kWh) for the contract to develop the scheme, which is located in the Eastern Province.

    The second-lowest bidder is a team that includes China's SPIC Huanghe Hydropower Development and France's EDF Renewables, which offered to develop the project for $c1.31/kWh.

    Saudi Power Procurement Company (SPPC) received six proposals from companies for the contracts to develop and operate four solar photovoltaic (PV) IPP projects in Saudi Arabia in August.

    The projects, which have a total combined capacity of 3,700MW, are being tendered under the fifth procurement round of the kingdom's National Renewable Energy Programme (NREP).

    According to SPPC, the lowest and second-lowest bidders in the remaining schemes under round five of the NREP are:

    Al-Masaa solar IPP (Hail): 1,000MW

    • L1: SPIC/EDF Renewables (France): $c1.36/kWh
    • L2: AlJomaih Energy & Water (local) / TotalEnergies Renewables (France): $c1.40/kWh

    Al-Hinakiyah 2 solar IPP (Medina): 400MW

    • L1: SPIC/EDF: $c1.51/kWh
    • L2: Masdar/Kepco/Nesma:  $c1.57/kWh

    Rabigh 2 solar IPP (Mecca): 300MW

    • L1: AlJomaih Energy & Water / TotalEnergies Renewables: $c1.78/kWh
    • L2: Masdar/Kepco/Nesma: $c1.89/kWh

    Saudi utility developer Acwa Power is not among the 23 companies that were prequalified to bid for the fifth round of NREP projects.

    US/India-based Synergy Consulting is providing financial advisory services to SPPC for the NREP fifth-round tender. Germany's Fichtner Consulting is providing technical consultancy services.

    The round five solar PV IPPs take the total capacity of publicly tendered renewable energy projects in Saudi Arabia to over 10,300MW. Solar PV IPPs account for 79%, or about 8,100MW, of the total capacity.

    Four wind IPPs, one of which has yet to be awarded, account for the remaining capacity.

    SPPC is procuring 30% of the kingdom's target renewable energy by 2030. Saudi sovereign wealth vehicle the Public Investment Fund (PIF) is procuring the rest through the Price Discovery Scheme. The PIF has appointed Acwa Power, which it partly owns, as principal partner for these projects.

    The Saudi Energy Ministry recently said that the kingdom plans to procure 20,000MW of renewable energy capacity annually, starting this year and until 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12768211/main.jpg
    Jennifer Aguinaldo
  • Ashghal tenders sewerage works

    21 October 2024

    Qatar’s Public Works Authority (Ashghal) has issued a tender for the construction of the remaining works for two packages of the Al-Kheesa foul sewer network.

    According to Ashghal's website, the project packages are called C2018/7 and C2017/118.

    It issued the tender on 9 October and expects to receive bids by 10 November. Asghal set the bid bond for the contract at QR1.7m ($467,000).

    MEED understands the project is located in the Al-Wajba area and is expected to be awarded in March 2025.

    It is one of the most recent infrastructure packages tendered by the authority, which oversaw the multibillion-dollar Local Roads and Drainage Programme (LRDP) in the run-up to the state's hosting of the Fifa World Cup in 2022.

    LRDP includes more than 200 road and drainage schemes worth an estimated QR53.2bn ($14.6bn).

    In September, Ashghal issued a tender for the construction of a road network in the Izghawa and Al-Themaid areas in the northwest of Doha.

    The project involves the construction of a single- and dual-carriageway road network in the area. The overall project is being procured in two work packages.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12767589/main1835.jpg
    Jennifer Aguinaldo