Petrofac, Hyundai awarded Saudi gas contracts

NATURAL GAS: Saudi Aramco confirms award of onshore gas contracts to UK-based Petrofac and South Korea's Hyundai Engineering. (Getty Images)

Top oil exporter Saudi Aramco said on Saturday it has awarded onshore contracts for the Karan gas field to UK-based Petrofac Ltd and South Korea's Hyundai Engineering and Construction Co Ltd.

Aramco signed the contracts with the two firms on Saturday, it said in a statement without disclosing their value.

"The signature of the two contracts ... embodies Saudi Aramco's adherence to fulfilling the domestic market's need for gas," it said.

The turnkey contract awarded to Petrofac will cater mainly for engineering, procurements and construction for utilities and cogeneration at Karan and includes laying a 47-km-long (29-mile) pipeline and building a power plant, Aramco said.

Hyundai's turnkey contract covers Karan's facilities and provides for the construction of a unit to process and deliver the gas as well as back-up utilities for all the gas-processing units, it added.

The cost of the project was reported to have fallen by at least 20 percent from previous estimates that pegged it as high as $5 billion.

Karan will produce 1.5 billion cubic feet per day. Gas from the field will be processed with gas from the Moneefa oilfield. (Reuters)

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