Saudi Arabia: 1.6 Billion Dollar Contract Awarded by Saudi Aramco Chiyoda and Larsen & Toubro Successfully form a Consortium
Chiyoda Corporation announces that Emas Chiyoda Subsea has, in partnership with Larsen & Toubro Hydrocarbon Engineering, been awarded a contract by Saudi Aramco.
Riyadh/Saudi Arabia – Emas Chiyoda Subsea 1 is a 50:50 joint venture company owned by Ezra Holdings and Chiyoda. The contract has a volume of more than US$ 1.6 billion, will see the consortium to provide integrated Engineering, Procurement, Construction and Installation services for the development of the second phase of the Hasbah Offshore Gas field.
Emas Chiyoda Subsea’s scope covers approximately 40 % of the contract value. Situated off the Coast of Saudi Arabia, the project is scheduled to be completed over a period of three and half years and will serve Saudi Aramco’s strategy to supply an additional 2,500 Million standard cubic feet of natural gas through the Fadhili Gas Plant to meet Saudi Arabia’s growing domestic energy demand.
This is the first major contract awarded by the Saudi Arabian petrochemical company to the newly formed consortium. The consortium has entered into a six year long term agreement, with exercisable options to extend for another six years, with Saudi Aramco in June last year to execute offshore projects with the oil company.
The consortium will be involved in the construction of two streams of three wellhead platform topsides, one tie-in platform with flare platforms and bridges tied together by umbilicals and in-field pipelines. Other works include interconnections of trunk lines to transport produced gas from the offshore gas field to the Fadhili Gas Plant. Fiber optic and other cables for power and communication networks will be installed in tandem. The installation of onshore facilities such as a beach valve station, a sectionalizing valve station and four scraper traps will also be executed as part of the contract. The engineering and fabrication component of the project has commenced and the offshore execution phase is expected to commence in the fourth quarter of calendar year 2017.