Petrofac and Tecnicas Reunidas reportedly chosen for $4.7bn Saudi projects

London-listed Petrofac and Spain’s Tecnicas Reunidas have reportedly been chosen for contracts worth as much as $4.7bn to build the Fadhili gas plant in Saudi Arabia for state oil giant Saudi Aramco.

Reuters cited an industry source as saying that the companies received a letter of intent last week.

Sources told Reuters in July that Italy's Saipem and South Korea's Daelim Industrial had previously been among the bidders.

Tecnicas is said to have bid for two of the packages on its own, and for the third in conjunction with South Korea's GS Engineering and Construction.

Sources told Reuters that Tecnicas Reunidas won the two packages in which it bid solo: for the gas processing unit for as much as $2bn and for utilities and offsites, worth as much as $1bn.

Three sources confirmed that Petrofac won the package for sulphur recovery worth up to $1.7 bn.

At 1234 BST, Petrofac shares were up 0.7% at 796.50p while Tecnicas shares were 0.1% higher at €40.33.