Saudi Aramco has awarded a US$175mn contract to Baker Hughes, a GE company, to drive enhanced production at the Haradh and Hawiyah gas fields, a move that is projected to strengthen the presence of BHGE in the Kingdom
Under the agreement, BHGE will supply 27 high-efficiency gas compression trains consisting of compressors, gearboxes, electric motors and loop oil systems for the extraction of gas from the Haradh and Hawiyah to feed the fields’ existing gas plants for processing.
BHGE said that it will work with local suppliers to help in delivering the equipment order, contributing to increased localisation and technology transfer. This, in turn, supports a Saudi-based small and medium enterprises (SME) supply chain that is expected to boost the economy.
The contract will be delivered by BHGE’s multimodal facilities in the Kingdom which will undertake the packaging, assembly, testing and servicing of the turbomachinery equipment. BHGE will also work with Saudi suppliers that support the oil and gas industry through the distribution of advanced equipment.
Part of Al-Ghawar, the world’s largest oilfield, Haradh and Hawiyah gas fields play a major role in supporting the Kingdom’s focus on leveraging its gas resources, complementing Saudi Aramco’s plans to double gas production to 23bn scf per day in the next decade.
This is in line with the Kingdom’s goal to increase the contribution of gas from 50 to 70 per cent of the overall energy mix, the highest among the G20 countries.
Abdulaziz Al-Abdulkarim, vice-president of procurement and supply chain management Saudi Aramco, said, “The contract with BHGE has a strong in-Kingdom value creation component that will benefit the development of a ‘Made in Saudi’ supply chain for the oil and gas sector.”
“The Gas Compression trains to be supplied by BHGE will further enhance the efficiency of our gas fields, bringing more value to the economy,” he added.
