Santa Fe Affiliate Receives $40-Million Saudi Arabian Contract
An affiliate of Santa Fe International Corporation, Orange, Calif. 92668, has been awarded a contract by Arabian American Oil Co. for a 33-month construction project as part of a longrange program to expand oil and gas production facilities in Saudi Arabia.
The contract, covering costs plus a fixed fee, is expected to produce revenues of approximately $40 million, excluding the cost of materials to be incorporated into the project.
Santa Fe president E.L. Shannon Jr. said a Santa Fe subsidiary holds a 70-percent interest in the contracting firm, Arabian Industrial & Petroleum Facilities Construction Co. The remaining 30-percent interest is owned by a prominent Saudi contractor, Abdullah Shuwayer.
The contract covers the construction of eight gas compression and conditioning plants, and the modification of two existing facilities serving 10 gas-oil separator plants in the northern part of Ghawar field. It also will include the construction of a pipeline network to collect compressed gases and liquids from these plants for delivery to a natural gas liquids center in the Shedgum area.
Mobilization for the project started during contract negotiations, Mr. Shannon said, and work will begin immediately.