Marjan

Marjan Oil and Gas Field Expansion Project Profile

Location and Discovery

The Marjan oil and gas field is located offshore in the Arabian Gulf, near the eastern coast of Saudi Arabia, close to the Iran-Saudi Arabian water borders. The field was discovered in 1967 and is one of the oldest and largest offshore oil and gas fields in the region.

Current Status and Infrastructure

The Marjan field has been in production since 1973, with the initial production capacity of 100,000 barrels per day (bpd) of oil and 175 million standard cubic feet per day (Mscfd) of gas through the Marjan GOSP-1. By 1994, two additional gas-oil separation plants (GOSP-2 and GOSP-3) were brought online, increasing the total production capacity to 600,000 bpd of oil and 675 Mscfd of gas.

Expansion Project Details

The Marjan Crude Increment Programme, announced in 2017, is a significant expansion project aimed at increasing the field's production capacity.

• Production Increase: The project aims to increase the crude production capacity by 300,000 bpd to reach a total of 800,000 bpd of Arabian Medium crude oil. Additionally, it will process 2.5 billion standard cubic feet per day (Bscfd) of gas and produce 360,000 bpd of ethane and natural gas liquids (NGL).
• New Infrastructure:
  • A new offshore gas-oil separation plant (Marjan GOSP-4) will be constructed to handle up to 475,000 bpd of oil and 750 Mscfd of gas.
  • The project includes the development of 24 new oil, gas, and water injection platforms, along with 200 km of subsea cables and additional tie-in platforms, production decks, subsea export and infield pipelines.
  • The decks on two existing tie-in platforms will be replaced, and existing gas turbine generators will be removed and replaced with new installations.
• Onshore Expansion:
  • The Tanajib processing complex will be expanded with the addition of a new gas plant, NGL recovery and fractionation facility, gas compression facilities, a cogeneration facility, and a water desalination plant.

Investment and Contractors

The estimated total investment for the Marjan increment project is approximately $12 billion, with $5 billion allocated for offshore work packages and $7 billion for onshore packages.

Several contractors are involved in the project, including:

• McDermott and China Offshore Oil Engineering Company (COOEC) for the Marjan GOSP-4 EPCI contract.
• Sinopec Engineering for pipeline projects.
• L&T Hydrocarbon Engineering (LTHE) for tie-in platforms, production deck modules, and subsea pipelines and cables.

Technological and Logistical Aspects

The project involves unprecedented offshore construction, including the installation of the largest platforms, the longest subsea cables, and complex networks of subsea pipelines. Advanced technologies such as smart helmet technology with artificial intelligence are being used to supervise inspection activities and mechanical testing.

The project also presents significant logistical challenges, including managing offshore traffic and ensuring the safe execution of the project amidst one of Aramco's busiest operational fields.

Economic and Social Impact

The Marjan increment program is part of Saudi Aramco's broader strategy to increase its crude oil maximum sustainable capacity from 12.0 to 13.0 million bpd. This project, along with others like the Berri and Zuluf increments, aims to enhance Saudi Aramco's position as a leading integrated energy supplier and meet growing global demand for petroleum.

The project is expected to create thousands of direct and indirect job opportunities for Saudi nationals, supporting Saudi Aramco's efforts to localize and create new job opportunities. The project also aligns with Saudi Aramco's In-Kingdom Total Value Add Program (IKTVA) goals, which aim to increase locally-sourced goods and services.

Environmental and Sustainability Considerations

The project includes measures to reduce the carbon intensity of the crude oils produced, supporting Saudi Aramco's strategy of reducing emissions while providing energy. The company is committed to employing best-in-class technologies, well completion, and reservoir management practices to achieve this goal.

In summary, the Marjan oil and gas field expansion project is a complex and ambitious undertaking that aims to significantly increase production capacities, utilize advanced technologies, and contribute to the economic and social development of Saudi Arabia.