Saudi Aramco to double Fadhili budget after FEED work
The national oil company (NOC) Saudi Aramco is about doubling the budget allocated to its strategic gas central processing facility (CPF) project to be build on the Fadhili oil field in the Eastern Province of the Kingdom.
In order to support its economical development Saudi Arabia is targeting a natural gas production of 15 billion cubic feet per day (cf/d) by 2018.
This gas is required to replace the crude oil in the electric power generation, to feed the mixed crackers of the future petrochemical projects and to support the enhanced oil recovery (EOR) program of the maturing crude oil fields.
In addition, the sustainable gap between the crude oil price and the natural gas price is motivating Saudi Aramco to speed up the conversion of crude oil into natural gas wherever it may be possible.
Originally the Fadhili gas processing plant was due to collect and treat the associated gas from the eponymous oil field.
Therefore Saudi Aramco had budgeted a $1.6 billion capital expenditure project for a CPF with a design capacity of 1 billion cf/d of natural gas.
Foster Wheeler completed Fadhili gas plant FEED
In December 2013, Saudi Aramco awarded the front end engineering and design (FEED) contract to Foster Wheeler.
In addition to Fadhili gas central processing facility, Foster Wheeler FEED contract included:
– Fadhili export pipelines
– Onshore Khursaniyah upstream facilities
– Offsite and utilities
– residential quarter
To be located approximately 30 kilometers southwest of the existing Khursaniyah gas central processing facility the greenfield Fadhili gas plant will also process:
– Hasbah non-associated gas
– Khursaniyah sour gas.
In this conditions, Foster Wheeler redesigned the Fadhili gas CPF with 1.5 billion cf/d capacity of natural gas.
As a consequence from the last costs estimates provided by Foster Wheeler, Saudi Aramco is now considering an overall budget of $3 billion capital expenditure for the Fadhili gas central processing facility project.
Because of the revised size of the Fadhili project, Saudi Aramco is planning to split the call for tender for the engineering, procurement and construction (EPC) contracts in three packages:
– Gas inlet and treatment
– Process utilities
– Sulfur recovery unit
In order to benefit from the best technologies and speed up the project execution when the EPC contracts will be awarded, Saudi Aramco accepted to qualify the bidders regardless the percentage of the engineering work being performed in-Kingdom and out-of-Kingdom.
In tendering the EPC contract on last quarter 2014, Saudi Aramco is expecting to start the execution of the Fadhili gas plant on mid 2015 for the first operations planned by 2018.
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