Saudi Aramco awards $18bn in contracts to expand offshore capabilities

File photo of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. (Reuters/File Photo)
Updated 09 July 2019

Saudi Aramco awards $18bn in contracts to expand offshore capabilities

  • Aramco says 16 local and international companies were chosen out of 90 invited to bid
  • Contractors working on the projects will be required to maximize their purchases of material and equipment from Saudi suppliers and manufacturers

RIYADH: Saudi Arabia’s oil company Aramco has awarded $18 billion in contracts to expand oil and gas capacity at two of its fields, with Saudi companies being granted half of the awarded contracts.

Aramco said in a statement on Tuesday it had awarded 34 contracts for engineering, procurement and construction at the Majran and Berri offshore fields to expand crude oil production by 550,000 barrels per day and gas by 2.5 billion standard cubic feet per day.

Aramco says 16 local and international companies were chosen out of 90 invited to bid on the packages.

Contractors working on the projects will be required to maximize their purchases of material and equipment from Saudi suppliers and manufacturers. Aramco says the projects are also expected to create thousands of local jobs.

“These two programs will significantly enhance Saudi Aramco’s oil production and gas processing capabilities, both strengthening our position as the leading integrated energy supplier and meeting growing long-term demand for petroleum,” said Amin H. Nasser, president and CEO of Saudi Aramco.

“These investments will support our continued focus on employing best-in-class technologies, well completion, and reservoir management practices. It will enable Saudi Aramco to further reduce the carbon intensity of our crude oils, supporting our strategy of reducing emissions while providing energy to those who need it,” he added.

The Marjran program is an integrated development project for oil, associated gas, non-associated gas and cap gas from offshore fields, while the Berri increment program plans to add 250,000 barrels of Arabian Light Crude per day from its offshore oilfield.

(With AP)


Lufthansa cabin crew union stages all-day strike at smaller airlines

Updated 20 October 2019

Lufthansa cabin crew union stages all-day strike at smaller airlines

  • There is escalating row over workers’ pay and pensions
  • The cabin crew union has for months fought with the airline in court over UFO’s legal status

FRANKFURT: German flight attendants’ union UFO on Sunday said it would stage an all-day strike at smaller German divisions of airline group Lufthansa in an escalating row over workers’ pay and pensions.
The walkout at Lufthansa brands Germanwings, Eurowings, Lufthansa City Line and Sunexpress had initially been scheduled for 0300-0900 GMT but the union in a statement on Sunday said industrial action would now be extended until midnight local time (2200 GMT), citing threats made by the airline over jobs as reason.
A Lufthansa spokesman said the strike was illegal because UFO’s status as a negotiator on behalf of staff was in doubt.
Lufthansa on Friday had offered a 2 percent pay rise to cabin staff, prompting the union to call off a planned strike at Lufthansa’s namesake core brand at hubs Frankfurt and Munich.
But the dispute deteriorated after UFO found the offer lacked concessions on expenses and employment conditions.
The cabin crew union has for months fought with the airline in court over UFO’s legal status. Lufthansa claims the union’s new leadership team that took office earlier this year was not elected in a way that met legal requirements.