Saudi Aramco awarded a front-end engineering and design (FEED) contract to Foster Wheeler for work on Saudi Aramco’s unconventional gas program.
The FEED contract is expected to last five years and involve the development of tight gas fields around the Kingdom in the Empty Quarter, South Ghawar, and Jalamid regions.
The tight gas projects come as Saudi Aramco is prioritizing such projects over development on shale gas.
Recent assessments suggest that tight gas production costs may be as low as $2-3 per million British thermal units, substantially lower than preliminary shale gas production cost estimates.
Total man-hours for the contract have not yet been specified.
Source: U.S.-Saudi Arabian Business Council