EMAS CHIYODA Subsea consortium clinches US$1.6 billion contract from Saudi Aramco

EMAS CHIYODA Subsea consortium clinches US$1.6 billion contract from Saudi Aramco

22 July 2016
For immediate release

  • Consortium of EMAS CHIYODA Subsea and Larsen & Toubro Hydrocarbon Engineering awarded US$1.6 billion EPCI project in the Arabian Gulf
  • Major contract marks significant milestone since the consortium entered into a long term agreement (6 years, with options of 2 x 3 years) with Saudi Aramco last year
  • High-visibility project paves the way for further opportunities within the region

EMAS CHIYODA Subsea has, in partnership with Larsen & Toubro Hydrocarbon Engineering (“LTHE”), been awarded a contract by Saudi Arabian oil giant, Saudi Aramco.

The contract award, which is valued at over US$1.6 billion, will see EMAS CHIYODA Subsea and LTHE provide integrated Engineering, Procurement, Construction and Installation (“EPCI”) services for the development of the second phase of the Hasbah Offshore Gas field. EMAS CHIYODA Subsea’s scope covers approximately 40% of the contract value.

Situated off the Coast of Saudi Arabia, the project is scheduled to be completed over a period of three and half years and will serve Saudi Aramco’s strategy to supply an additional 2,500 MMSCFD of clean natural gas through the Fadhili Gas Plant to meet Saudi Arabia’s growing domestic energy demand.

This is the first major contract awarded by the oil giant to the EMAS CHIYODA Subsea-LTHE consortium. The consortium has entered into a six year long term agreement, with exercisable options to extend for another six years, with Saudi Aramco in June last year to execute offshore projects with the oil company. The contract award is a testimony to the expertise and capabilities helmed by the teams at EMAS CHIYODA Subsea and LTHE, and paves the way for further opportunities within the region for the consortium.

“EMAS CHIYODA Subsea will harness its engineering expertise and utilise its modern fleet of subsea construction vessels to work together with LTHE in the execution of offshore EPCI work in the Arabian Gulf,” said Mr Lionel Lee, EMAS CHIYODA Subsea’s Chief Executive Officer. “We are truly grateful to Saudi Aramco for this opportunity to demonstrate our team’s execution expertise and the unique capabilities of our portfolio of assets. We believe this project will provide us with yet another chance to showcase our commitment to operational excellence and in doing so, help cement the Group’s position in the Middle East.”

The consortium will be involved in the construction of two streams of three wellhead platform topsides, one tie-in platform with flare platforms and bridges tied together by umbilicals and in-field pipelines. Other works include interconnections of trunk lines to transport produced gas from the offshore gas field to the Fadhili Gas Plant. Fiber optic cables and other cables for power and communication networks will be installed in tandem. The installation of onshore facilities such as a beach valve station, a sectionalizing valve station and four scraper traps will also be executed as part of the contract.

The onshore engineering and fabrication component of the project has commenced and the offshore execution phase is expected to commence in the fourth quarter of calendar year 2017.

ABOUT THE COMPANY

EMAS CHIYODA Subsea is a global EPCIC (Engineering, Procurement, Construction, Installation and Commissioning) service provider of comprehensive subsea-to-surface solutions throughout the lifecycle of oil and gas projects. On 31 March 2016, Chiyoda Corporation (“Chiyoda”) completed its investment in Ezra Holding Limited’s (“Ezra”) subsea services business, EMAS AMC, to form EMAS CHIYODA Subsea – a 50:50 Joint Venture.

Operating in unison, Ezra’s core divisions, including EMAS CHIYODA Subsea, EMAS Energy, EMAS Marine, EMAS Production and TRIYARDS, are able to execute a full spectrum of engineering, construction, marine and production services anywhere in the world. With offices across six continents, Ezra delivers best-value solutions to the oil and gas industry by combining its global footprint and proven engineering skills with a diverse offering of premium assets and services designed to fully meet clients’ needs.

Chiyoda, headquartered in Yokohama, Japan, is a world-leading engineering company, providing a wide-range of services in the fields of energy, chemicals, petrochemicals, industrial facilities and others, and having a global position in LNG production facilities. In accordance with its Medium Term-Term Management Plan and upon the establishment of EMAS CHIYODA Subsea, Chiyoda has successfully developed its capability being an Offshore and Upstream project integrator to provide “Seamless subsea developments from concept to execution and life of field”.

Larsen & Toubro is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services with over USD 16 billion in revenue. It operates in over 30 countries worldwide. A strong, customer–focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for over seven decades.

EMAS CHIYODA Subsea has entered the consortium through its local subsidiaries EMAS AMC Pte. Ltd. and EMAS Saudi Arabia Ltd.

Media enquiries:

EMAS CHIYODA Subsea
MRS JEANNE RIGHTER LOWE
+1 832 276 6166
Jeanne.righter@emaschiyoda.com