The Marjan Increment Project aims to boost production of the offshore Arabian field Marjan from 500,000 to 800,000 barrels of oil per day


Saudi Aramco awards EPCI contract for Marjan Increment Project package 2 to Subsea 7, LTHE consortium (Credit: Subsea 7)

Subsea 7, in consortium with L&T Hydrocarbon Engineering (LTHE), has bagged an engineering, procurement, construction, and installation (EPCI) contract for the Marjan Increment Project package 2 in the Arabian Gulf.

The value of the contract awarded by Saudi Aramco was not disclosed, but Subsea 7 said its share will be in the range $300-$500m (£242.6m- £404.4m).

The scope of the contract includes EPCI of new tie-in platforms, production deck manifolds, nearly 217km of rigid pipelines, about 145km of power cables, and a fibre optic cable in the Marjan field in water depths of roughly 45-52m.

According to Subsea 7, offshore execution of the contract work is slated to be carried out in 2021 and 2022.

Subsea 7 Middle East vice-president Adzariat Monergi said: “This award builds on our track record of reliable project execution in the Kingdom of Saudi Arabia, and the close collaboration we enjoy with LTHE. We look forward to continuing our successful relationship with Saudi Aramco, supported by the recent offshore completion of several projects.”

Marjan Increment Project details

The Marjan Increment Project is an integrated development project for oil, associated gas, non-associated gas and cap gas from the Marjan field located offshore Saudi Arabia.

The project aims to boost production from the Marjan field production by 300MBCD of Arabian Medium Crude Oil and process 2.5BSCFD of gas. The Marjan Increment Project will involve the construction of a new offshore gas oil separation plant along with 24 offshore oil, gas, and water injection platforms.

The latest contract from Saudi Aramco to the LTHE, Subsea 7 consortium follows three contracts from the Arabian oil and gas company for EPCI of a total of 28 jackets for multiple fields, which include the Marjan and Zuluf fields among others.

In January 2019, the same consortium won a contract from Saudi Aramco pertaining to the Berri and Zuluf fields in the Arabian Gulf. Under the contract, the consortium is responsible for delivering EPCI services for three oil production deck manifolds and subsea pipelines in the two offshore fields.