China Offshore Oil Engineering Company (COOEC) has been selected for an offshore gas engineering contract by Saudi Aramco, as the kingdom accelerates efforts to boost domestic gas supply and reduce crude burn.

The contract covers engineering, procurement, construction and installation of four gas jackets at offshore fields including Arabiyah, Hasbah and Karan, according to the news report.

While financial details and timelines were not disclosed, the award follows a competitive tender process launched in June 2025, with bids submitted in August after multiple deadline extensions.

McDermott International had initially submitted the lowest bid based on early evaluations, though there was no certainty it would secure the final award.

COOEC, a subsidiary of China National Offshore Oil Corporation, has been expanding its presence in Saudi Aramco’s offshore programme through a series of contract wins.

The company previously secured a contract covering 13 jackets at the Safaniya field, along with additional packages at Abu Safah and the Arabiyah-Hasbah development.

The latest award comes amid a broader increase in offshore investment by Saudi Aramco, which has allocated billions of dollars to expand production capacity.

In July alone, the company selected contractors for multiple offshore packages estimated to exceed $3bn, covering key fields including Berri, Manifa, Marjan and Zuluf.

The project reflects a wider regional push to expand gas production capacity, allowing Saudi Arabia to reduce reliance on crude for domestic power generation and safeguard export volumes.

This strategy has gained further momentum as geopolitical tensions underscore the vulnerability of oil supply routes, reinforcing the importance of strengthening domestic energy resilience.