Saipem Eyes JV with Saudi Construction Firm
Saipem reported Tuesday that it has signed a memorandum of understanding (MOU) with the Saudi construction firm Abdel Hadi Abdullah Al Qahtani & Sons Co. (AHQ).
The MOU lays the groundwork for Saipem and AHQ to form a joint venture (JV) in Saudi Arabia that blends Saipem’s competence and skills and in engineering, procurement and construction with AHQ’s knowledge and expertise in logistics, construction and supply chain, Saipem explained in a written statement emailed to Rigzone. The Italy-based firm added the JV aims to become a top-tier player in onshore construction and onshore pipeline EPC projects.
“Saudi Arabia has been a core market to Saipem from the outset and our ambition is to maintain our EPC leading role in the country,” Maurizio Coratella, chief operating officer for Saipem’s Onshore E&C Division, commented. “We are committed to establishing this joint venture together with AHQ with the aim of harnessing synergies to support our key client Saudi Aramco.”
Coratella added that a major benefit of the JV would be its alignment with the national oil company’s initiative to boost local content.
“A central feature of the partnership is the possibility to operate in compliance with the requirements of the IKTVA (In-Kingdome Total Value Add) program launched by Saudi Aramco as an integral part of its contracts to achieve 70 percent localization of spending by 2021,” the Saipem executive concluded.
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