MEOG: Saudi pipeline, drilling contract awards

Contracts have been awarded for work to improve gas connectivity in Saudi Arabia as the country continues to build out utilisation of the resource. Another deal was awarded for oilfield services with a focus on drilling.

The first contract was awarded by the Ministry of Energy to the Natural Gas Distribution Co. (NGDC) to establish and manage a dry gas network in Dammam Third Industrial City. The city is a major industrial hub in the country, housing around 176 existing or upcoming factories. The value of the contract has not been disclosed.

The second contract was awarded by Saudi Aramco to US oilfield services company Weatherford International for the provision of drilling services. The three-year deal will enable Weatherford to deploy its drilling services portfolio, which includes a suite of technology that combines services, real-time information analysis, and drilling tools to maximise efficiency.

The awards of these contracts are part of Saudi Arabia's efforts to diversify its energy mix and reduce its reliance on oil. The country has set a target of increasing the share of gas in its energy mix to 50% by 2030.