Marjan

Marjan Oil and Gas Field Expansion Project Profile

Location and Discovery

• The Marjan oil and gas field is located in the Arabian Gulf, off the eastern coast of Saudi Arabia, near the Iran-Saudi Arabian water borders. The Iranian portion of the field is known as the Foroozan field.
• The field was discovered in 1967 by Aramco geologists, significantly expanding the company's inventory of offshore oil fields.

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 from 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.
• The existing infrastructure includes three offshore GOSPs, with the oil and gas produced being piped to the Tanajib complex onshore for further processing.

Marjan Increment Program (MIP)

• Announced in 2017, the Marjan Increment Program is a significant expansion project aimed at increasing the crude production capacity of the Marjan field by 300,000 bpd to reach 800,000 bpd of Arabian Medium crude oil. The program also includes the production of 2.5 billion standard cubic feet per day (Bscfd) of associated and non-associated gas, and 360,000 bpd of ethane and natural gas liquids (NGL).

Key Components of the Expansion

• Offshore Development:

  • Construction of a new offshore gas-oil separation plant (Marjan GOSP-4), designed to handle up to 475,000 bpd of oil and 750 Mscfd of gas.
  • Installation of 24 new oil, gas, and water injection platforms.
  • Laying of 200 km of subsea cables and the installation of two 115kV subsea power and communication cables.
  • Additional tie-in platforms, production decks, subsea export and infield pipelines, and the replacement of decks on existing tie-in platforms.

• Onshore Development:

  • Expansion of the Tanajib processing complex, including a new gas treatment and processing plant, NGL recovery and fractionation facilities, and gas compression facilities.
  • Construction of a new 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, including McDermott in consortium with China Offshore Oil Engineering Company (COOEC) for the Marjan GOSP-4, Sinopec Engineering for pipeline projects, and L&T Hydrocarbon Engineering (LTHE) for various platform and pipeline works.

Technological and Innovative Aspects

• The project employs the latest technologies, including smart helmet technology with artificial intelligence for supervising inspection activities and mechanical testing.
• It also involves innovative solutions and best-in-class marine and offshore traffic control measures to ensure safe and efficient project execution.

Economic and Social Impact

• The project is part of Saudi Aramco’s broader strategy to increase its crude oil maximum sustainable capacity from 12 to 13 million bpd, along with other increments at the Berri and Zuluf fields.
• The expansion is expected to create thousands of direct and indirect job opportunities for Saudi nationals, supporting Saudi Aramco's localization efforts and the In-Kingdom Total Value Add Program (IKTVA) goals.

Environmental and Sustainability Considerations

• The project aims to reduce the carbon intensity of the crude oils produced, aligning with Saudi Aramco’s strategy of reducing emissions while meeting global energy demands.

Project Timeline

• Front-end engineering and design (FEED) studies began in 2017, with multiple developmental work packages awarded in 2018 and 2019. The project is expected to be completed by 2025, although some components were initially scheduled for completion in 2022.

The Marjan Increment Program is a complex and ambitious project that underscores Saudi Aramco's commitment to enhancing its production capacities, leveraging advanced technologies, and contributing to the global energy supply while addressing sustainability concerns.