Bid & Tender

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Project Summary
Project Name: Saudi Aramco’s Marjan Oilfield Development Project
Facility Type: Oil and Gas Field
Client: Saudi Aramco
Budget (US $): 20,000,000,000
Project Initiation: Nov 16, 2016
Project Completion:: Dec 08, 2025
Location: Marjan
Project Current Status

Aramco has extended the commercial bid submission deadline to 29 January for CRPO 127, an estimated $2.4bn tender that involves the EPCI works for several structures at the Marjan oil and gas field. The scope of work on CRPO 127 entails: Eight slipover jackets Three production deck modules Upgrade of auxiliary platforms Laying of subsea pipelines and cables spanning 166 kilometres Demolition of existing units. (January 2024)

Project History
  • Saudi Aramco plans a major new project to develop the offshore Marjan oil and gas field. It has been engaged in meetings with engineering groups working in its offshore sector to determine how to handle the Marjan field development and how to break down the work into separate packages. (February 2017)
  • Amec Foster Wheeler wins a five-year contract to deliver the pre-feed, feed and other support services for an additional 300,000 barrels per day gas/oil separation train, a world scale greenfield gas processing plant, a cogeneration facility and modifications to an existing facility to add natural gas liquids fractionation capacity at Marjan. (June 2017)
  • Worley Parsons of Australia wins a contract for engineering and design work (FEED) for offshore facilities and pipelines for the expansion of the Marjan oilfield. New offshore facilities such as platforms and additional pipelines will link to a new gas facility in Tanajib on the Gulf coast, and from Tanajib to the expanded natural gas liquid (NGL) facility in Khursaniyah. (July 2017)
  • WorleyParsons wins the project management for the offshore oil and gas facilities portion and the onshore upstream and downstream pipelines portion of the project. (July 2017)
  • EPC tender for Marjan Gas Oil Separation Plant (GOSP) project is set to be issued soon. The contract would include the replacement of the decks of two existing tie-in platforms, as well as the removal and salvage of existing gas turbine generators, and the installation of two new 115kV subsea power and communication cables. The plant is expected to operate at a capacity of 300,000 barrels per day (bpd). (February 2018)
  • Tender for Marjan field expansion is expected in July 2018. The construction packages are expected to be awarded in 2019 with completion scheduled in 2022. (February 2018)
  • As part of Marjan Crude Increment Program, Wood Group of UK has won a 5-year contract to support engineering and project management services to develop the Marjan oil field. The FEED, major increment and overall PMC will be executed from Wood’s Reading UK, Khobar, Saudi Arabia and India offices. (February 2018)
  • Aramco is looking to tender 4 to 6 offshore contracts for the Marjan oil field development project over the coming weeks. One source said that the packages are expected to be large even if they were divided into six, adding that they will include decks, jackets and pipelines. (May 2018)
  • Aramco has awarded the installation contract of ten oil and gas jackets located across the Marjan, Safaniya and Abu Safah fields, to National Petroleum Construction Company (NPCC) of UAE. The scope of the work includes Installation of oil and gas jackets, tie-in platforms, trunklines, associated offshore gas facilities, and associated facilities. (July 2018)
  • Bids have been invited by 9 December, 2018 for three packages worth $1.4 billion as part of the Marjan Field Development Megaproject. The packages are – Package 1 relates to GOSP-4 Development and Crude Export Pipeline. The scope of the project is to build new offshore facilities such as platforms and subsea power and communication cables. The package is estimated to be worth $500 million. Package 2 relates to Offshore Oil Facilities. It is valued at $400 million. Package 4 relates to Offshore Gas Facilities. It is valued at $500 million. (August 2018)
  • Saudi Aramco has awarded a large-scope integrated services contract to Baker Hughes, a GE company (BHGE) as part of its Marjan Field Development Megaproject. BHGE to provide drilling services, coiled tubing services and drilling fluids engineering services. Under the contract, BHGE will commence work this month with an aim to increase the field’s capacity. (September 2018)
  • Bids have been submitted for the $400 million EPC contract for a water injection package, which is a part of the onshore portion of Marjan Field Development Megaproject. The contract scope involves constructing facilities to transport water from well sites on the Marjan field to the Gas Oil Separation Plant (GOSP) in Tanajib. (October 2018)
  • EPC bids are due to be submitted by 31 December, 2018 for three pipeline packages, worth $200 million each. The pre-qualified firms are - Arkad Engineering & Construction of Saudi Arabia, China Petroleum Pipeline Engineering Corporation, Nasser S Al Hajri Corporation of Saudi Arabia, Punj Lloyd of India, Saipem of Italy, Sinopec of China, and Tecnicas Reunidas of Spain. (December 2018)
  • Bids are now due to be submitted by 6 January, 2019 for key onshore package ‘Package 6’, which is part of its $15 billion Marjan Field Development Megaproject. The contract scope includes construction of general oil processing facilities at the Tanajib oil complex. This will enable the main gas oil separation plant (GOSP-4) at Tanajib to process an additional 300,000 barrels per day (bpd) of crude oil from the Marjan field. (December 2018)
  • Contractors prepare bids for the main EPC works for five offshore packages worth a combined value of $2.65bn. A deadline of 13 January, 2019 was given to the contractors. (January 2019)
  • Contractors are preparing bids for Marjan onshore packages with a combined value of about $2bn. (January 2019)
  • Saipem has been awarded a contract for the EPCI work on the offshore Marjan fields. The scope of work includes design, engineering, procurement, construction, installation and implementation of subsea systems, in addition to the laying of pipelines, subsea cables and umbilicals, platform decks and jackets. (January 2019)
  • Aramco has pre-qualified firms for Marjan power and steam project. Tender for this project will be merged with Tanajib seawater desalination plant. (January 2019)
  • EPCI works for offshore Marjan field has been awarded to McDermott of US. The contract scope includes the full suite of EPCI services for the upgrade of two existing platforms related to the installation of associated equipment for electrical submersible pumps (ESPs) and space for a future high integrity pressure protection system (HIPPS), subsea composite cable lay and topside cable tie-ins. (March 2019)
  • Aramco has received bids for the onshore packages with a combined value of $2 billion for Marjan Field Development Megaproject. The contractors that submitted bids for all six onshore packages include: Hyundai Engineering & Construction of South Korea, Petrofac of UK, Saipem of Italy, and TechnipFMC of France / Samsung Engineering of South Korea. (March 2019)
  • Aramco has invited the pre-qualified companies to submit bids by 29 July, 2019 for its planned Marjan co-generation independent steam and power plant (ISPP), which will be co-developed with the Tanajib desalination project. (March 2019)
  • For EPC works on the offshore packages 1, 2 and 4, contractors that have been selected are – China Offshore Oil Engineering Company (COOEC), McDermott International of US, and Larsen and Toubro Hydrocarbon Engineering (LTHE) of India / Subsea7 of UK, respectively. Package 1 scope involves new gas oil separation plant (GOSP 4) and installing crude export pipelines. Package 2 includes provision of the offshore gas facilities needed to process about 1.26 billion cubic feet a day (cf/d) of gas from the Marjan field, with the bulk of associated gas coming from GOSP 4. Package 4 covers installation of offshore oil facilities, pipelines, crude dehydration facilities, fire water pumps, flare stacks, and other utilities and associated facilities. (March 2019)
  • Bids opened for the 5 onshore packages, the lowest bidders emerged are - Package 6 – Saipem of Italy, Package 9 – Tecnicas Reunidas of Spain, Package 10 – Saipem of Italy, Package 11 – Tecnicas Reunidas of Spain, and Package 12 – Hyundai Engineering & Construction of South Korea / Hyundai Engineering of South Korea. (May 2019)
  • For the pipelines packages the lowest bidder emerged is Sinopec Engineering of China. The three pipeline packages – 16, 17 and 18 – have a combined worth of $400 million, each ranging between $100 mn and $200 mn. The bidders for the 3 packages were – Arkad Engineering & Construction of Saudi Arabia, Cat Group of Lebanon, China Petroleum Pipeline Engineering Corporation, Hak Industrial Services of The Netherlands, Larsen & Toubro of India, Nasser S Al Hajri Corporation of Saudi Arabia, Punj Lloyd of India, Saipem of Italy, Sinopec of China, Tecnicas Reunidas of Spain. The packages scope will involve the installation of pipelines from the main GOSP at Tanajib to the oil processing facilities at Jubail, Ras Tanura and Tanajib. (May 2019)
  • Saipem is a new frontrunner for EPC works on the offshore package 2 of the megaproject. (June 2019)
  • Bids submission deadline bids for the planned Marjan cogeneration ISPP has been extended to 9 September, 2019, from the previous submission date of 29 July, 2019. (July 2019)
  • Saudi Aramco has signed LoIs for multiple packages of Marjan Field Development Megaproject. For offshore package 1, estimated to be around $3.5 billion, the contractor selected is McDermott in a consortium with China Offshore Oil Engineering Company (COOEC). The contract scope will involve the commissioning of a new gas oil separation plant (GOSP 4) and installing crude export pipelines. For offshore package 4, estimated to be around $1.7 billion, the contractor selected is McDermott International of US. The contract scope will include provision of the offshore gas facilities needed to process about 1.26 billion cubic feet a day (cf/d) of gas from the Marjan field, with the bulk of associated gas coming from GOSP 4. (July 2019)
  • The Offshore package 2 has been awarded to Saipem of Italy for a value of around $1 billion. The package scope will involve installation of offshore oil facilities, pipelines, crude dehydration facilities, fire water pumps, flare stacks, and other utilities and associated facilities. (July 2019)
  • Saudi Aramco has awarded 34 contracts with a total value of $18 billion for EPC projects at its Marjan and Berri oilfields. (July 2019)
  • Aramco has awarded a 3.2 trillion won ($2.7 billion) contract to Hyundai Engineering & Construction (E&C) of South Korea for two major onshore packages – 6 and 12 – of an oil field incremental development project in Marjan. The 1.72 trillion won Package 6 will include construction of onshore oil facilities and pipeline lying, while the Package 12 deal, which is worth 1.45 trillion won, will include provision of utilities, flare and pipe rack facilities. (July 2019)
  • For the two pipelines packages of Marjan field development project, Sinopec Engineering Incorporation of China, a subsidiary of Sinopec Group, has been signed up. The packages scope will involve the installation of pipelines from the main gas oil separation plant (GOSP) at Tanajib to the oil processing facilities at Jubail, Ras Tanura and Tanajib. (July 2019)
  • The "Gas Treatment and Sulfur Recovery" contract has been awarded to Saipem of Italy for the Marjan field. It will involve the construction of a gas treatment unit and of another unit for the recovery of acid gases for sulfur production. The treatment of acid gases will almost completely eliminate the release of sulfur oxides into the environment: more than 99.9% of the gases will be recovered and CO2 emissions into the atmosphere will comply with the most stringent international standards. (July 2019)

  • Saudi Aramco has selected the consortium for three offshore contracts – 47, 48 and 49. The consortium of Larsen & Toubro Hydrocarbon Engineering (LTHE) of India and Subsea7 of UK is set to collectively win between $400mn and $450mn worth of jobs for the three contracts. The scope of work for the three jobs is: CRPO 47: Eight standardised oil and water rig jackets in the Marjan and Zuluf oil fields, CRPO 48: 10 standardised oil and water jackets in Marjan and Zuluf, CRPO 49: 10 standardised oil and water jackets in Zuluf and RBYN. (August 2019)
  • Saudi Aramco has awarded contracts to provide offshore jackets for three job numbers – 47, 48 and 49, to a consortium of Larsen & Toubro Hydrocarbon Engineering (LTHE) of India and Subsea7 of UK. The offshore jackets are in Zuluf, Marjan, Safaniya and Ribyan offshore fields of Saudi Arabia. LTHE is a subsidiary of Larsen & Toubro and is based in Mumbai, India. (September 2019)
  • A contract to manufacture more than 16 kilometres of heavy-duty steel pipe for the Marjan project has been awarded to Liberty Steel Hartlepool of UK. The order to supply SAWL Linepipe for an expansion of the Saudi Aramco Marjan field is the first major contract the Hartlepool mills have won from the Middle Eastern Kingdom since being acquired by Liberty almost two years ago. Liberty in conjunction with Sumitomo Corporation Middle East FZE, will supply the Marjan project with more than 16 kilometres of Submerged Arc Welded Linepipe (SAWL) from its 42-inch UOE mill, one of two mills it operates at Hartlepool. The offshore Linepipe, suitable for highly-resilient ‘sour service’ application, is due for delivery in the final quarter of 2019. (September 2019)
  • The bids submission deadline has been extended to 30 September, 2019 from the previous deadline of 9 September, 2019 for the planned Marjan cogeneration ISPP, which will be co-developed with the Tanajib desalination project. (September 2019)
  • 4 groups have submitted bids for the planned Marjan cogeneration ISPP – Acwa Power of Saudi Arabia / Gulf Investment Corporation (GIC) of Kuwait, Engie of France, Kepco of South Korea / Al-Jumaih of Saudi Arabia, Marubeni of Japan. (October 2019)
  • The consortium of Marubeni of Japan and Abu Dhabi National Energy Company (TAQA) has received a conditional letter of award for the planned Marjan cogeneration ISPP. (March 2020)
  • Aramco has asked contractors performing EPCI work on the multiple packages of its estimated $15bn Marjan offshore field development scheme to slow down project execution which implies that the work schedule and commissioning of the project will be delayed by at least six months. The measure is aimed at cost savings amid the prevailing industry downturn. (June 2020)
  • China Offshore Oil Engineering Company (COOEC) has made a formal request to Saudi Aramco to withdraw involvement in the project. A consortium of McDermott and COOEC was awarded an estimated $3.5bn contract to perform EPCI works on package 1 that entails building the central gas oil separation plant (GOSP) system. Aramco is yet to make a decision. (September 2020)
  • Tecnicas Reunidas of Spain, the EPC contractor for the Marjan Onshore Packages 9 and 11, has awarded a sub-contract to Siemens Energy. Under the contract, Siemens Energy will supply electric motor driven gas compressor trains for Saudi Aramco’s Tanajib Plant facilities. A total of 21 compressor trains will be supplied and will be used in several gas treatment plant compression services, including high pressure (HP) and high-high pressure (HHP) injection, sales gas, refrigerant, and sour off-gas. The packaging of the compressor trains will be completed at Siemens Energy’s Dammam facilities in the KSA. (February 2021)
  • Aramco has awarded a contract to Heerema to transport and install six large jackets of Package-1 of the Marjan Increment Project. The contract scope includes the transportation and installation of six jackets, piles, and boat landings, which make up part of the GOSP complex. The jackets are all within the weight range of 4,500 to 6,700 metric tons with a maximum footprint of 90 x 52 meters. Heerema will transport the jackets from the L&T yard in Oman to the Marjan offshore field using the company’s H-591 barge. The installation vessel will be Heerema’s largest semi-submersible crane vessel Sleipnir, which runs on emission-reducing LNG and has a lifting capacity of 20,000 metric tons. Sleipnir will lift install the jackets and the 92 piles, which have a combined weight of 24,000 metric tons, in 2023. The project will be run from Heerema’s Leiden Office and the soon-to-be-established Al Khobar office. The project is an integrated development program to increase the production capacity from the Marjan offshore field. (February 2022)
  • Saipem has been awarded two contracts at a value of nearly $1 billion for operations in the Middle East and Brazil. One of the deals covers engineering, procurement, construction, and installation (EPCI) of five platforms and associated subsea pipelines, flowlines, and cables in the Aramco’s Marjan field which is located offshore Saudi Arabia, featuring an entirely in-Kingdom fabrication project. (July 2023)
  • Saudi Aramco has invited bids for a major tender that involves EPCI of multiple structures at the Marjan oil and gas field. The tender number is 127 in CRPO system. It could be valued at $2.4bn. The scope of work includes: Eight slipover jackets, Three production deck modules, Upgrade of auxiliary platforms, Laying of subsea pipelines and cables spanning 166 kilometers, Demolition of existing units. The deadline for commercial bid submission is 15 January, 2024. (January 2024)
Project Contract Awards - Feed
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
Project Contract Awards - PMC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • WorleyParsons of Australia
  • WorleyParsons of Australia
  • WorleyParsons of Australia
Project Contract Awards - EPC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Hyundai Engineering & Construction Co Ltd.
  • Tecnicas Reunidas
  • McDermott
  • Saipem
  • Sinopec Engineering
  • Hyundai Engineering & Construction Co Ltd.
  • McDermott
  • Saipem
  • Sinopec Engineering
  • Tecnicas Reunidas
  • Hyundai Engineering & Construction Co Ltd.
  • McDermott
  • Saipem
  • Sinopec Engineering
  • Tecnicas Reunidas
Related Projects
Saudi Aramco’s Offshore Oil and Gas Development Projects
Saudi Aramco’s Marjan Gas Oil Separation Plant (GOSP) Project
Saudi Aramco’s Marjan Cogeneration ISPP
Saudi Aramco’s Marjan Field Development Project – Offshore Packages
Project Schedule

July 2017: Contract Award PMC

August 2018: ITB for Package 1,2,4

October 2018: Bids Submission for EPC of Water Injection Package

December 2018: Bids Submission for three EPC Pipeline Packages

March 2019: Bids Submission for 6 Onshore Packages

July 2019: Contract Award EPC

October 2019: Bids Submission for EPC of ISPP

January 2024: Bids Invited for CRPO 127

2025: Expected start-up and commissioning

Project Scope

The project scope involves the expansion of the Marjan oil and gas field in Saudi Arabia’s Eastern province. The Marjan offshore field is located about 85 kilometers northeast of Aramco’s Tanajib oil complex in the Gulf.

 

The project scope covers offshore facilities and an onshore element involving the processing of oil and gas and pipelines connecting the offshore and onshore elements. 

 

This megaproject will connect new offshore facilities to a new gas facility in Tanajib on the Gulf coast, and further to the expanded natural gas liquid (NGL) facility in Khursaniyah.

 

The pipelines packages scope will involve the installation of pipelines from the main gas oil separation plant (GOSP) at Tanajib to the oil processing facilities at Jubail, Ras Tanura and Tanajib.

 

Marjan oilfield delivers a high volume of associated gas and the new oil capacity will replace in time declines in oil capacity from other fields elsewhere. It's gas-driven expansion. The amount of gas capacity being added is not yet known.

 

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

 

Aramco presents six different onshore EPC packages.

 

The first onshore package comprises of an expansion of the existing Tanajib plant which will process an additional 300,000 bpd from the offshore Marjan field.

 

In addition, additional packages are offered for the creation of a new gas plant at Tanjib, which will process 2.790 billion cubic feet per day of gas and 85,000 bpd of condensate from the Marjan, Safaniyah and Zuluf offshore fields.

 

The offshore packages comprise gas oil separation platform (GOSP-4) and a cap gas production (CGP) network with combined value of more than $5 billion.

 

Aramco has an oil production capacity of 12 million bpd. The expansion plans are to compensate for declining fields elsewhere, rather than to add to total capacity.

Project Structure:
The project is owned, operated and managed by Saudi Aramco.
A. R.Rao
Address: National Petroleum Construction Co. .NPCC., P.O. Box 2058, Abu Dhabi, United Arab Emirates.
Designation: Project Engineering Manager .NPCC.
Department: Projects
Phone: .+971. .2. 5023146
Fax: .+971. .2. 5549111
Email: raoar@npcc.co.ae
AhmedAl Wahedi
Address: National Petroleum Construction Company, P.O. Box 2058, Abu Dhabi, United Arab Emirates.
Designation: Assistant General Manager .NPCC.
Department: Commercial
Phone: .+971. .2. 5549000
Fax: .+971. .2. 5549111
ArunGopalan
Address: Larsen & Toubro EPC,
Designation: Project Manager .L&T.
Phone: .+91. 22 2858 1329
Fax: .+91. 22 2858 1988
Email: ago@epc.ltindia.com
CarolynSmith
Address: Wood Group, United Kingdom
Designation: Business Manager
Department: Corporate Communications
Phone: +44 .0. 1224 851099
ChristineKeoks
Designation: Projects Department Officer
Department: Saudi Aramco
Phone: +966 3-874-2219
GregDelore
Address: Worley Oil & Gas - Umm Shaif Injection Project,Level 6,QV1, 250 St. George's Terrace,Perth,Western Australia, 6000,Australia.
Designation: Procurement Manager
Department: Worley Parsons, Australia
Phone: .+61. .08. 9278 8162
Fax: .+61. .08. 9278 8337
Email: greg.delore@worley.com.au
JiamingLiu
Address: SINOPEC Engineering Construction Company

No. 21 Anyuan Anhuibeili Chaoyang District Beijing, China .100101.

Designation: Engineering Manager
Department: Engineering Department
Phone: 0086-10-64962266
Fax: 0086-10-64963397
KurtNelson
Address: J Ray McDermott Incorporated, 757 North Eldridge Parkway, Houston, TX 77079, Texas, United States of America.
Designation: Operations Manager
Phone: .+1. 281 870 5000
MajedAl Mugla
Address: Saeed Tower, Dammam Khobar Highway, P.O. Box 151, Al Khobar 31952, Saudi Arabia, Al Sharqiyah
Designation: Vice President, Project Management
Department: Saudi Aramco
Phone: +966 3-872-0115
MikeCross
Address: Plot 42,Jebel Ali Free Zone,P.O. Box 16961,Dubai,United Arab Emirates
Designation: Project Manager
Department: J Ray McDermott Middle East
Phone: +971 4 804 3623
Fax: +971 4 883 5527
MohammadAl Onaizi
Designation: Communications Manager
Department: Project Control Department, Saudi Aramco
Phone: +966 3 862 1142
Fax: +966 3 873 8190
Moreno Bartolucci
Designation: Operations Manager
Department: Saipem
Phone: +966 3 807 0191
Fax: +966 3 882 5755
Email: moreno.bartolucci@saipem.eni.it
S. H.Kim
Designation: Project Manager
Department: Hyundai Engineering and Construction
Phone: +966 1-450-6255
Fax: +966 1-470-2005