Saudi Aramco has signed $500 million deals with GE to supply a broad range of equipment and services for expansion of its Shaybah gas-oil processing facilities.

The project will enable Saudi Aramco to enhance its oil recovery efforts and spur further economic growth in Saudi Arabia, said a statement from GE.

The agreements demonstrate the strength of GE Energy’s integrated high-technology equipment and services portfolio and reflect GE’s commitment to continued investment and localization in the region.

With one of the world’s fastest growing economies, Saudi Arabia continues to present significant opportunities for technology innovation and infrastructure development.

Shaybah, which is Saudi Aramco’s most remote oil field, is located in the southeastern section of the Kingdom. It is already highly productive, following a 50 per cent capacity upgrade in June 2009 from half-a-million barrels per day (bpd) to 750,000 bpd of Arabian Extra Light crude.

The new expansion is expected to enable Saudi Aramco to further increase crude production to 1 million bpd and increase the gas-oil ratio (GOR) of the field from 1,800 to 7,200 standard cubic feet per stock tank barrel (scf/stb).

“This latest project with Saudi Aramco reflects GE’s commitment to localization and sustainable growth in the Kingdom. As Saudi Arabia forges ahead with its ambitious national development plans, we look forward to continue to support Saudi Aramco and other customers in the region with GE’s high-tech multi-business approach,” said Joseph Anis, GE Energy’s president for the Middle East.

“Our desire to deliver a complete suite of high-technology and service solutions, while meeting Aramco’s compressed  project timeline, were essential factors in being selected to deliver the extensive scope of this important project,” Anis remarked.

To generate the additional 729 MW of power, GE is supplying 11 gas turbine-generators, 44 compressors, motors and services. This will bring the total supply of GE gas turbines to Saudi Aramco to more than 110 and the number of GE centrifugal compressors to nearly 100.

A key feature of the expansion, the valuable natural gas liquid (NGL) components from gas produced at Shaybah will be recovered through the construction of the new Sabkha NGL recovery plant which will process 2.4 billion standard cubic feet per day (scfd) of low-sulfur sweet gas and extract 264,000 bpd of NGL. The gas is used in petrochemical applications.

In addition, services and training will be provided through the GE Energy Manufacturing Technology Center in Dammam, Saudi Arabia, said Anis. The 10,000 sq m facility represents a $100 million investment in the largest GE center of excellence worldwide, he added.-TradeArabia News Service