Saudi Aramco has jointly awarded JGC Corporation and JGC Arabia the engineering, procurement and construction (EPC) contract for the Zuluf AH Increment Central Processing Facilities. Zuluf field is a giant offshore oil field located in the Arabian Gulf, approximately 240km north of Dhahran.
JGC Corporation operates the overseas EPC business of the group, while JGC Arabia is its Saudi Arabian subsidiary.
Masayuki Sato, representative director, chairman and CEO of JGC Holdings Corporation said that Saudi Aramco is promoting the Zuluf Arab Heavy Development Program to meet the growing global energy demand and is planning to increase production based on an additional 600 MBCD of AH crude.
“We have received the orders for the construction projects for the core onshore GOSP and utility facilities including Water Injection Facilities.”
“Going forward, the Group will continue to aim to win orders for projects planned by Saudi Aramco, in bid to boost job creation and facilitate technology transfer to many Saudi citizens through the execution of such projects, thereby contributing to the further development of Saudi Arabia,” he added.
JGC single largest contractor on the Zuluf megaproject
Meanwhile, commenting on the contract win, Indrajit Sen, Oil & Gas editor at GlobalData’s MEED, said: “The Zuluf production increment project is of critical importance to Saudi Aramco in its quest of attaining a maximum oil production capacity of 13mn b/d by 2027. Aramco has allocated a capital expenditure (CapEx) budget of $40bn to $50bn for 2022, and spending on the Zuluf EPC contracts accounts for a major chunk of this CapEx plan.
“By winning the two main onshore EPC packages, JGC has emerged as the single largest contractor on the Zuluf megaproject, with the combined value of its contracts estimated to be more than $3bn.”
“With Aramco looking to increase its investments towards oil, gas, refining and petrochemicals production capacities, the Japanese contractor, which has a considerable track record of EPC project execution in Saudi Arabia, has positioned itself as a partner of choice for more key project contracts,” he concluded.
