Analyzing Aramco’s Marjan Schedule Revision

The Saudi energy giant has asked contractors working on the various packages to slow down on delivery

Saudi Aramco has asked contractors performing engineering, procurement, construction and installation (EPCI) work on the multiple packages of its estimated $15bn Marjan offshore field development scheme to slow down project execution.

Aramco notified contractors about easing the pace of EPCI execution on the Marjan packages earlier in June, according to sources.

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The move implies that the work schedule and commissioning of the project will be delayed by at least six months, one source said.

Aramco has declined to comment on the matter.

The measure is aimed at cost savings amid the prevailing industry downturn, as the state company would need to pay contractors instalment amounts upon completion of milestones, the sources said.

In comparison to spending in previous years, Aramco has announced a lower capital expenditure of $25bn to $30bn for 2020.

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On 9 July last year, the state enterprise formally awarded the contracts for the 20-odd packages of the Marjan megaproject.

The scheme is an integrated project for sustaining and raising oil, associated gas, non-associated gas and cap gas production from the Marjan offshore oil and gas field in the long term.

The offshore oil field development project aims to increase the Marjan field’s production by 300,000 barrels a day (b/d) of Arabian Medium Crude Oil, process 2.5 billion cubic feet a day (cf/d) of gas and produce an additional 360,000 b/d of ethane (C2)+NGL.

Aramco also plans to expand its Tanajib onshore oil facilities and construct a new gas plant to include gas treatment and processing, natural gas liquids (NGL) recovery and fractionation and gas compression facilities. A cogeneration facility will be developed, in addition to a water desalination facility and new transfer pipelines.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here