Aramco to award $500m drilling work in Ghawar

Saudi Aramco plans to award an integrated drilling contract in South Ghawar worth $500 million in a bid to cut costs, sources at oil services firms said.

"They want one company to provide the rigs, directional services. The objective is to cut costs," said one source close to the bidding process.

Aramco is expected to award the contract by mid-November, they said.

Baker Hughes, Sinopec, Schlumberger, Halliburton, Weatherford are bidding for the job.

"It's an integrated project management from A to Z. What Aramco is trying to do is packaging and give the field to a services company to develop it," said another source involved in the bidding process.

"Today, there are Aramco rigs working there...Aramco now wants to give the project, the block to a services company which will provide rigs, engineering," he said.

The five-year turnkey project will allow services providers to fully manage the drilling operations including rigs.

Three sources said the work would involve Uthmaniyah, Haradh and Hawiyah located in Ghawar, the world's largest oilfield.