Marjan Oil Field Development

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PROJECT TYPE
Offshore oil and gas field expansion

LOCATION
Arabian Gulf, Saudi Arabia

DISCOVERED
1967

OWNER AND OPERATOR

Saudi Aramco

ESTIMATED INVESTMENT
$12bn

CAPACITY AFTER EXPANSION

800,000bpd

COMMISSIONING
2022
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Saudi Aramco looks set to delay its IPO once again. Image courtesy of Saudi Arabian Oil Co.
The Marjan oil and gas field is located in the Arabian Gulf, off the eastern coast of
Saudi Arabia.

Owned and operated by Saudi Arabia’s state-owned oil and gas company Saudi Aramco, the
offshore field is currently undergoing expansion under the Marjan Crude Increment
Programme announced in 2017.

The expansion programme aims to increase the crude production capacity of the field by
300,000 barrels per day (bpd) and produce 360,000bpd of ethane and natural gas liquids
(NGL) by processing an additional 2.5 billion standard cubic feet per day (Bscfd) of gas
produced from the field.

The Marjan Crude Increment Programme is being implemented through multiple work
packages, with an estimated total investment of $12bn. The offshore work packages are
valued at $5bn, while the onshore package is estimated to be worth up to $7bn.

The Marjan field expansion project forms part of Saudi Aramco’s $18bn investment
programme for boosting the production capacity of the Marjan and Berri offshore fields, by
550,000bpd of crude oil and 2.5 billion standard cubic feet per day (bscfd) of gas.

The Marjan field is expected to reach its expanded crude production capacity of 800,000bpd
in 2022.
Marjan field discovery and infrastructure
development
Discovered in 1967, the Marjan field was originally estimated to contain 2.31 billion barrels
of recoverable crude oil.

The existing infrastructure facilities for the field include three offshore gas-oil separator
plants (GOSPs).

The Marjan GOSP-1, with a production capacity of 100,000bpd of oil and 175 million
standard cubic feet of gas a day (Msfcd), was installed in 1973, while GOSP-2 and GOSP-3
were brought into operation in 1994, bringing the total production capacity of the offshore
field to 600,000bpd of oil and 675Msfcd of gas.

The oil and gas produced from the GOSPs are piped onshore to Tanajib for further
processing. The operations of the Marjan oilfield are also controlled from the onshore
control centre at Tanajib.

Marjan oil field expansion details

Marjan Crude Increment Programme includes the development of an offshore GOSP, named
Marjan GOSP-4, within 10km of the GOSP-2 and GOSP-3 facilities, and 24 oil, water and gas
injection platforms.

The offshore expansion also includes additional tie-in platforms, production decks, subsea
export and infield pipelines, as well as the replacement of decks of two existing tie-in
platforms, the removal of existing gas turbine generators, and the installation of two 115kV
subsea power and communication cables.

The onshore element of the project involves the expansion of the Tanajib processing
complex, with the addition of a gas plant. It also includes a new NGL recovery and
fractionation facility and additional gas compression facilities.

Furthermore, a water desalination facility and a co-generation facility are planned to be

developed as part of the project.

Contractors involved
McDermott was awarded two engineering, procurement, construction and installation
(EPCI) contracts for the Marjan field expansion project in July 2019.

The first EPCI contract award for the Marjan GOSP-4 that McDermott received in
consortium with China Offshore Oil Engineering Company (COOEC) is valued at $3bn.

The second contract is worth $1.5bn. It was exclusively awarded to McDermott and is for
three tie-in platforms, seven wellhead platforms, and the installation of subsea trunk lines
and in-field pipelines of a total length of 540km.

Saipem received the EPCI contract for new gas treatment and sulphur recovery units at the
Tanajib onshore processing facility for the Marjan increment project in July 2019.
In January 2019, Saipem was also awarded another EPCI contract for the subsea systems of
the Marjan oil field expansion, including new platform decks and jackets, as well as the
subsea cables and umbilicals.

Sinopec Engineering was contracted for two pipeline projects for the Marjan field expansion
in July 2019.

In the same month, L&T Hydrocarbon Engineering (LTHE) was granted the contract for four
tie-in platforms, one tie platform module, and nine production deck modules, as well as
217km of subsea pipelines and 145km of subsea cables.

WorleyParsons received the front-end engineering and design (FEED) services contract for
the project in July 2017.

Wood Group was awarded a five-year contract for providing engineering and project
management services for the Marjan oilfield expansion project in February 2018.

Baker Hughes (BHGE) was contracted for drilling and coiled tubing services for the Marjan
oilfield expansion in September 2018.