By Kyunghee Park and Ayesha Daya
March 2 (Bloomberg) -- Saudi Aramco awarded contracts to Hyundai Engineering & Construction Co., South Korea’s largest builder by market value, and Petrofac Ltd. to raise natural gas production from its offshore Karan field.
Hyundai received an order to build gas processing plants worth about 2.1 trillion won ($1.35 billion), the Seoul-based company said in an e-mailed statement today. It is the company’s single biggest contract since May last year.
Petrofac, the London-based oil-services provider with projects in the Middle East and the North Sea, will expand the utilities and build pipelines for the project, Aramco said in a statement on its Web site.
Saudi Arabia, which holds the world’s fourth-largest natural gas reserves, is trying to boost gas output to meet increased demand from domestic industries. The Karan project will process 1.8 billion cubic feet of gas a day when it starts operations in mid-2011, Aramco said. The planned output is 20 percent more than stated in Aramco’s 2007 review and 80 percent above its initial plans.
Construction of the facilities in Khursaniyah, in the eastern part of Saudi Arabia, will take about three years to be completed, according to Hyundai’s statement.
Saudi Aramco discovered the new gas field 160 kilometers (100 miles) off Dhahran, in its Eastern Province, in April 2006.
To contact the reporter on this story: Kyunghee Park in Hong Kong at kpark3@bloomberg.net
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