Aramco Awards Major Deals to 8 Companies
Saudi Aramco (TADAWUL: 2222) has announced that it has awarded major long-term agreements (LTA) to eight companies for its oil and gas brownfield projects.
The deals, which are for a six-year base period and extendable for an additional six years, were made with the following companies after a “thorough evaluation process”, Aramco revealed:
- A consortium of Nasser Saeed Al-Hajri and Contracting /Samsung EPC Co. Ltd.
- Daelim Saudi Arabia Co. LTD.
- Engineering for The Petroleum and Process Industries (Enppi) Branch.
- GS Construction Arabia Co. Ltd.
- Snamprogetti Engineering and Contracting Co. Ltd. (Saipem).
- JGC Gulf Engineering Co. Ltd.
- A branch of Technip Italy S.P.A.
- A branch of Hyundai Engineering and Construction Co. LTD.
The scope of the agreements includes engineering, procurement, construction, start-up and pre-commissioning of each project, as well as the installation of the upgraded facilities in the designated operating areas, according to Saudi Aramco. The contracts also mandate a minimum commitment to use 39 percent local content and supply chains initially, before increasing to a 60 percent commitment within six years, Saudi Aramco outlined.
“We are delighted to have concluded these LTAs as part of our new strategy, which offers a number of benefits to Aramco and our partners, and it will have a positive impact on the business environment and economic activities in the Kingdom,” Ahmad A. Al Sa'adi, Aramco’s technical services senior vice president, said in a company statement.
“These LTAs which are associated with huge business which allow us to boost the performance of our brownfield and upgrade projects through new technologies and pioneering environmental sustainability fundamentals, while improving contract procurement and construction phases,” he added.
“In addition, it will enable us to continue developing homegrown talent in Saudi Arabia through achievable employment targets. This is very important to us, as well as contribute to our IKTVA target to increase local content,” he continued.
Saudi Aramco is a leading producer of the energy and chemicals that drive global commerce and enhance the daily lives of people around the globe, according to its website.
To contact the author, email email@example.com
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.