Shell and Saudi Aramco prepare bids for Kidan FEED
and Shell are working, through their Saudi Aramco joint venture ( South Rub Al-Khali Limited ), on the SRAK of the call for tenders of the front end engineering and design (FEED) Kidan gas field development project.
Saudi Arabia holds the third largest reserves of non-associated in the natural gas Middle East after Iran and Qatar.
estimates that Shell three-quarters of this is trapped in gas sour or . tight gas formations
In this context, never put the Saudi Aramco exploration and production of its on the non-associated gas first page of its priorities.
actual at their gas prices floating lowest ever levels under the pressure of the US market, even more the Saudi Aramco may question interest for such large investments.
in parallel, Saudi Arabia consumption of energy is ramping up calling for more supply of crude oil.
barrel standing above $100, the production of electricity out of crude oil becomes questionable.
In addition the
use of expensive crude oil as feedstock of the petrochemical sector is eroding the historical competitive advantage of Saudi Arabia in its integrated upstream– downstream business model.
Saudi Arabia is willing to boost its petrochemical industry to reliance on crude oil and create jobs for the younger generation, gas appears as a reasonable alternative.
second half 2010 and Shell signed a Saudi Aramco second contract to explore 210,000 square kilometers in the Rub al-Khali, or Empty Quarter, region in southeast of Saudi Arabia.
area is about as large as the whole UK, so that both companies decided to focus on the Kidan formation.
agreement, and Shell Saudi Aramco reactivated their 50/50 joint venture ( South Rub Al-Khali Limited ) to start a SRAK new appraisal program of the Kidan sour . gas fields
December 2010, and Shell got the Saudi Aramco permit from the Saudi Ministry of Petroleum and Mineral resources for the exploration of the Rub Al-Khali region. WorleyParsons completed Kidan feasibility study
January 2011, and Shell selected the Saudi Aramco Australian engineering company to perform the WorleyParsons of feasibility study gas processing facilities for the Kidan project.
From the first results of this exploratory campaign, and Shell estimated the Saudi Aramco investment to develop Kidan to $8 billion capital expenditure.
Because of the
amount and the remote location of the Kidan far from infrastructures, gas field, and Shell are planning to Saudi Aramco proceed in two phases of $4 billion capital expenditure each.
first phase should include the , but the gas processing facilities high content of the Kidan sour of gas field hydrogen sulfur (H2S), up to 35%, require from start a sulfur treatment unit.
completed by feasibility study , the WorleyParsons Kidan should include: gas processing facility
– Dehydration and dew-pointing unit
– Gas sweetening
– Condensate stabilization
– Export gas compression
Kidan should gas processing facility be designed with a capacity of 500 million cf/d of in order to natural gas match with the phases 1 and 2 of SRAK development.
gas processing facilities will be connected to the Saudi transportation network by an export pipeline to be part of Kidan project.
pressure of to Saudi Aramco get this , gas out on short term is preparing the SRAK of the call for tender . FEED contract
As part of
Saudi Aramco policy to favor the local content, only the engineering companies pre-qualified by their General Engineering Service plus (GES+) contract should be invited to bid.
replaced WorleyParsons among the Foster Wheeler , the GES+ pre-qualified companies should be sent only to: call for tender
– SNC Lavalin – Zuhair Fayez
joint venture , SRAK and Shell expect to Saudi Aramco release the for the call for tender of the FEED Kidan gas field development project on first half 2013 for the award on second half 2013.
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