MOSCOW (MRC) -- British oilfield services company Petrofac and Spain's Tecnicas Reunidas are likely to win contracts to build projects for state oil giant Saudi Aramco's Uthmaniyah and Ras Tanura plants, said Reuters.
Tecnicas Reunidas is the lowest bidder to build units for a cleaner fuels project at Ras Tanura refinery, originally estimated to cost more than USD2 B, aimed at removing sulfur from refined oil products, the source said.
The project is part of a drive by the kingdom to meet stricter environmental standards in export markets. Petrofac is the front-runner to build a gas treatment facility at Uthmaniyah gas plant, expected to cost around USD600 M, the sources said.
Top oil exporter Saudi Arabia is struggling to keep up with domestic demand for gas, used in a number of sectors such as petrochemicals that are key to diversify the economy. The aim of the Uthmaniyah project is to recover ethane as well as propane and other NGL from 1.4 Bcfd of gas.
Uthmaniyah is one of the operating areas of Ghawar, the world's largest onshore oilfield. The gas plant has a processing capacity of 2.5 Bcfd.
Saudi Arabia is building a number of gas plants to meet rising domestic gas demand. It has said its Fadhili, Midyan, and Wasit gas plants will add more than 5 Bcfd of non-associated gas processing capacity.
Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world's most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.