Aramco reportedly pauses Safaniya onshore tender

Saudi Aramco is reported to have extended the bid deadline for its Safaniya onshore oilfield development project, according to industry publications. This move, affecting the enhancement of the world’s largest offshore oilfield, is seen by analysts less as a delay and more as a deliberate adjustment in a high-stakes capital programme.

UAE-based consultant Abu Ahmad, writing on LinkedIn, referenced a report from Middle East Energy Digest (MEED), noting that the deadline has been pushed back.

Safaniya, with a production capacity of 1.2mn barrels per day (bpd) and reserves estimated at 37bn barrels, is a cornerstone of Saudi Arabia’s long-term energy strategy. The project in question focuses on enhancing the onshore surface facilities, a critical node in sustaining the asset’s reliability and efficiency.

In July, Aramco initiated the tender process, asking its pool of pre-qualified engineering contractors to register their interest. According to sources cited by MEED at the time, contractors subsequently submitted responses to this “solicitation of interest” document. While main EPC tenders were anticipated shortly, the timeline has now been adjusted.

The complexity of the undertaking is significant. It includes the construction of new onshore surface facilities, comprehensive gathering systems, and oil and gas separation units. It also mandates substantial pipeline upgrades, new tie-ins for improved crude handling, and new power distribution infrastructure, all while integrating with existing gas-oil separation plants (GOSPs) and water injection systems.

While no official reason for the postponement has been issued, such moves typically signal scope revisions or strategic realignments within Aramco’s upstream portfolio. For the competing engineering, procurement, and construction (EPC) firms, this extension provides a strategic opportunity to refine complex technical proposals and strengthen partnerships, ensuring alignment with potentially updated specifications.

This project is a crucial component of Aramco’s broader objective to add over 1.2mn bpd of new capacity from its Berri, Marjan, Zuluf, Dammam, and Safaniya assets. This new output is designed to offset natural decline and build on recent gains. Aramco had previously guided investors to “deliver around 350,000 bpd from Safaniya during 2027, with another 250,000 bpd thereafter,” contingent on a final investment decision.

The tender’s adjustment will only intensify the fierce competition among Aramco’s favoured Long-Term Agreement (LTA) partners. With recent LTA extensions for Lamprell and China Offshore Oil Engineering Co., and established players like McDermott and Saipem, the field is crowded. However, the recent award of a major contract to Abu Dhabi’s NMDC Energy demonstrates that the competitive landscape remains highly dynamic.