Offshore Saudi Contract Goes to Boskalis and Lamprell
Saudi Aramco has awarded a Long Term Agreement for Offshore Facilities (LTA) program contract to a consortium of Royal Boskalis Westminster N.V. and Lamprell plc, the recipients reported earlier this week.
The LTA covers engineering, procurement, construction, transportation and installation (EPCI) contracts to support the national oil company’s Offshore Maintain Potential Program, Oil & Gas Program and other offshore expansions, Boskalis and Lamprell said in separate written statements.
“This is one of the most sought-after and selective processes in the industry and the award advances our strategic aspirations with respect to both Saudi Aramco and the EPCI sector, as well as cementing our relationship with an industry partner in Boskalis,” Lamprell CEO Christopher McDonald said. “Saudi Arabia is the cornerstone of Lamprell’s growth strategy.”
Boskalis CEO Peter Berdowski said that winning the LTA represents an “important milestone” for his company.
“As spearhead of our strategy we have over the last number of years invested in vessels and people to broaden our offshore transport and installation capabilities,” Berdowski continued. “The choice for Boskalis as LTA partner supports and confirms our strategic vision.”
Lamprell’s focus areas under the LTA will include engineering, procurement and construction of offshore structures such as topsides and jackets. Boskalis will concentrate on transporting and installing these structures, along with specialist subsea activities such as survey and pipeline and cable installation.
Boskalis and Lamprell also noted that the LTA, part of Saudi Aramco’s “ambitious offshore investment program,” could translate into more than $3 billion in investments per year with a six-year program duration. Saudi Aramco has options to extend the LTA for an addition three-plus-three years, and selected contractors have the right to bid for Saudi Aramco tenders without further technical prequalification, they added. Such a bidding scenario would considerably shorten the lead time through to award, the recipients explained.
“In the coming year, we will focus on tendering and building up our local organization in preparation of the execution of projects for the period thereafter,” said Berdowski. “It is expected that the agreement will generate multiple hundreds of millions of euros revenue for Boskalis.”
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