Saudi Aramco is poised to award contracts for approximately 90 initiatives over the next three years as it continues with its significant upstream oil and gas capacity expansions. The company plans to tender and award contracts for 66 projects concerning oil and gas processing and refining facilities, 14 projects relating to pipelines and distribution, and 10 for civil infrastructure and security systems. Contractors attending the recent In-Kingdom Value Add (iktva) Forum in Dhahran indicate that Aramco is ramping up its investment after a slowdown due to the COVID-19 pandemic and economic slowdown.
The planned 90 projects are expected to necessitate 12,000 kilometers of pipelines, 20,000 kilometers of cables, and 2.2 million cubic meters of concrete. Despite the optimistic outlook on the business in the region, contractors believe that there may be some challenges along the way, such as supply chain bottlenecks, competition for personnel and materials, and prolonged lockdowns due to the COVID-19 pandemic.
Aramco aims to increase its oil production capacity to 13 million barrels per day by 2027, with the majority of the increase coming from offshore fields. Other major initiatives include the development of the Jafurah onshore unconventional gas field and the expansion of the Master Gas System. Contractors anticipate that offshore projects will dominate contract awards this year, as offshore rigs and other equipment require a longer lead time.
Amin Nasser, CEO of Aramco, stated in August that the company would increase its capital spending to between $40 billion and $50 billion in 2022, with further increases to follow in 2023-2025. In its third-quarter earnings report, the company reported a rise in capital expenditures for the first nine months of 2022 to $26 billion, compared to $23 billion in the same period in 2021.
Source: (bbc.com)
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