Saudi Aramco has set up 34 contracts valued at $18bn to execute design, supply, and construction projects in Berri and Marjan oil fields.
Saudi Aramco announced in a statement on its website that it aims to raise the capacity of the two fields; Berri and Marjan by 550 thousand barrels per day of Arab oil crude and 2.5 billion standard cubic feet of gas per day, and noted that the Company’s maximum sustainable production capacity of oil is currently 12 mb daily.
“Saudi Aramco continues its global leadership in the oil and gas industry by developing and establishing a giant and integrated program to increase oil production from the two fields of Berri and Marjan and to establish a large gas processing plant,” Amin Al-Nasser, the President and CEO of Saudi Arabian Oil Company Saudi Aramco, said.
“This capital investment, valued at $18bn today, to be pumped into a group of projects that significantly enhance Saudi Aramco’s capabilities and supports its long-term investment plans to meet global demand for oil,” Al-Nasser added.
The program also contributes to the growth of the gas production capacity. This contributes to achieving the economic diversification of Saudi Arabia in the chemical industry. It also helps to improve the environment and raise the level of efficiency by increasing the use of gas in the production of electricity and reducing the use of liquid fuel.
The company confirmed that Marjan’s program is beneficial for the Company’s revenue, the industrial development in Saudi Arabia, and supports the Saudi private sector; as the projects were assigned to 16 local and international companies with headquarters in Saudi Arabia in the fields of engineering, procurement, and construction.
Local companies were awarded 50% of total contracts, thus Al-Marjan program is considered the highest among the giant industrial projects in Saudi Arabia in terms of the percentage of local content.
The contracts-awarded companies were forced to increase the volume of their procurement of materials and equipment from the national manufacturers to support the national industrialization and raise local content to 70% by 2021, which is Saudi Aramco’s most important objective through its “The In-Kingdom Total Value Add (IKTVA) program”, in the hope that the Marjan project group will generate thousands of direct and indirect jobs, most of them in the private sector, especially in the engineering and construction sector, reinforcing Saudi Aramco’s efforts to localize jobs and generate job opportunities.
The increment production program in the Marjan oil field is an integrated project program to increase the production of crude oil and associated gas, non-associated gas, and higher reservoir gas from the submerged Murjan field. A modern offshore refinery will be constructed to separate gas from oil, 24 oil, gas, and water injection offshore platforms, with the expansion of central oil processing facilities in prospecting and establishing an integrated gas processing plant, as well as dedicated facilities for the extraction and distribution of natural gas liquids, gas sales and injection facilities, a dual production plant for electric power generation, desalination plant, new pipelines for moving crude oil and other products to export platforms and local consumers, as well as the expansion of the residential area to accommodate the new employees working in the expansion of the Company’s business in the northern business district.