Background

Abu Sa'fah is a super-giant offshore oil field which is situated on the border with Bahrain. The field's production and reserves are split equally between Saudi Arabia and Bahrain although Saudi Aramco operates the field on behalf of both countries. A major redevelopment of Abu Sa'fah took place between 2001 and 2004 and the field's capacity was increased to 300,000 b/d of Arab Medium crude.

Bahrain and Saudi Arabia split annual revenues from the 300,000 b/d Abu Sa'fah offshore field in Saudi Arabia as a result of a 1958 political agreement. Saudi Aramco, Saudi Arabia’s state oil company, oversees production at the field. Bahrain refines and markets half of the output from Abu Sa'fah, which is connected to Bahrain’s Sitra refinery via pipeline. In 2015, Bahrain received 151,000 b/d of Abu Sa'fah crude oil from Saudi Arabia, according to the Energy Information Administration.

Brief  Introduction

In order to further increase the production of the oilfield, the company launched the Abu Sa'fah oilfield expansion project.

In December 2018, Saudi Aramco plans to tender EPC contracts for the expansion project of the oilfield, with a contract value expected to exceed US$500 million. The tender documents are expected to be released in early 2019.

The Abu Sa'fah oilfield expansion project involves three contract packages: 

Package 1: Construction of offshore platforms.

Package 2: Offshore drilling.

Package 3: Construction of submarine pipelines and other facilities.

Company behavior

In December 2018, Saudi Aramco plans to tender EPC contracts for the expansion project of the oilfield.