Hyundai awarded $1.7bn contract for Jafurah gas field

Image Courtesy: Hyundai

A joint venture between South Korea’s Hyundai Engineering Co. and Hyundai Engineering & Construction Co. (Hyundai E&C), announced in a statement that the JV awarded the contract from The Saudi Arabia Oil Company (Saudi Aramco), to develop Jafurah unconventional gas field.

The value of the contract is 2 trillion won ($1.7 billion).

Hyundai Engineering and Hyundai E&C hold 55% and 45% stake in the JV, respectively.

The Hyundai consortium will construct sulfur recovery units and infrastructure of utility and offsite, Hyundai Motor Group said.

The 2 trillion won order is part of the $10 billion contracts Aramco has awarded to Saudi Arabian and global companies.

On Nov. 29, Aramco stated it has awarded subsurface and engineering, procurement and construction (EPC) contracts worth $10 billion, with capital expenditure at Jafurah expected to reach $68 billion during the first 10 years of development. (read more)

The largest natural gas field in Saudi Arabia, stretching 170 kilometers by 100 kilometers, is expected to produce up to 2 billion standard cubic feet per day (scfd) of sales gas, 418 million scfd of ethane and around 630,000 barrels per day of gas liquids and condensates by 2030, the Saudi Arabia’s state-run oil giant said.