Italian oil services contractor Saipem is reported to have won a contract for offshore work at Saudi Aramco’s non-associated gas fields feeding Wasit, Saudi Arabia’s biggest gas plant, according to industry sources.
Sources could not immediately provide the value of the contract but the overall cost of the program has been estimated at $6 billion to $8 billion, Reuters reported.
The development of the Wasit Gas Program is split into onshore and offshore construction packages. Offshore work includes the installation of tie-in platforms along with associated pipelines and cables to provide the feed gas to the Wasit processing facility.
Wasit is Aramco’s second project to develop gas fields that are not associated with oil production to meet rising domestic gas demand.
Oil company Eni, which controls Saipem, declined to comment when contacted by Reuters.
In January, Saudi Aramco awarded onshore packages to South Korean companies to build the facility, which will process 2.5 billion cubic feet per day of gas from the offshore sour gas fields Arabiyah and Hasbah when completed in 2014.