Houston-based firm McDermott is advancing construction of Aramco’s Marjan expansion project aiming to complete it by 2025, data by DMS Projects shows.
In July 2019, McDermott announced the award of two engineering, procurement, construction and installation (EPCI) contracts for the Marjan field expansion project.
The first EPCI contract, valued at $3 billion, was for the Marjan Gas Oil Separation Plant GOSP-4 and was awarded to a consortium of McDermott and China Offshore Oil Engineering Co (COOEC).
The second contract, worth $1.5 billion, was awarded to just McDermott and included three tie-in platforms, seven wellhead platforms, and the installation of subsea trunk lines and in-field pipelines of a total length of 540 kms.
The construction work was delayed significantly since McDermott filed for bankruptcy in 2020 and later emerged out of it after successfully completing its revamped capital structure, including a new term loan and letter of credit exit facilities, a newly constituted Board of Director and sale of its Lummus Technology.
Marjan expansion project background
With a total budget of $21 billion, the project aims to expand the field and increase its crude production capacity by 300,000 b/d as well as produce 360,000 b/d of ethane and natural gas liquids (NGL) by processing an additional 2.5 billion standard cubic feet per day (Bscfd) of gas produced from the field.
The Marjan oil and gas field is located in the Arabian Gulf, off the eastern coast of Saudi Arabia. Owned and operated by Saudi Arabia’s state-owned oil and gas company Saudi Aramco, the offshore field is being expanded as part of the Marjan Crude Increment project.
