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McDermott inks partnership deal with Saudi Aramco

RIYADH, May 23, 2017

McDermott International, a leading engineering, procurement, construction and installation (EPCI) contractor, has signed a deal with oil giant Saudi Aramco to expand and develop its physical and human capital within the kingdom.

The McDermott move comes in line with Aramco’s In-Kingdom Total Value Add (IKTVA) initiative.

The deal was signed on the sidelines of the first ever Saudi-US CEO Forum held recently to coincide with US President Donald Trump’s visit to Saudi Arabia.

At the forum, Saudi ministers and CEOs from major US companies met to discuss expanding business between the two countries.

McDermott was the only engineering, construction, procurement, and installation (EPCI) services contractor attending the summit along with other major US business leaders, said a top official.

The company believes the potential value of the memorandum of understanding (MoU) is $2.8 billion and will create up to 2,000 jobs over the next several years, said a top official.

"The deal enhances our deep-rooted relationship with Saudi Aramco, our largest customer, and further demonstrates our commitment to Saudi Arabia and its vision," remarked its president and CEO David Dickson.

"As part of our global strategy to enhance our capabilities and deepen customer relationships, this MOU strengthens our long-term plans to transition our Middle East operations to Saudi Arabia, which we believe positions us competitively in the regional market," he added.

The MoU, he stated, demonstrates McDermott’s support of Saudi Arabia’s Vision 2030 and Aramco’s IKTVA programme.

"The company is committed to a nine-initiative plan to increase its contribution to the country’s localisation efforts and aid Saudi Aramco in meeting its 2021 objectives. McDermott also plans to increase the number of Saudi nationals in its Middle East workforce to 40 per cent by 2030," he added.

McDermott’s nine-initiative plan expands the company’s local supply chain, develops full-scale fabrication and marine facilities and moves area operations to Saudi Arabia and provides career training and development opportunities for highly-skilled Saudi nationals.

“These initiatives underpin our long-term goal to significantly grow our business not just in Saudi Arabia, but regionally,” remarked Linh Austin, McDermott’s vice-president for the Middle East and Caspian area.

"This also builds on our recent efforts to increase Saudi Arabian-based fabrication and engineering through the opening of our new yard in Dammam and office in Al Khobar, as well as locally-sourced procurement," he added.

Saudi Aramco launched the IKTVA program in 2015 to expand Saudi-based business operations to help drive domestic value creation and maximise long-term economic growth, diversification, job creation and workforce development to support a rapidly changing local economy.

McDermott has extensive experience offshore Saudi Arabia, having worked in the region for more than 50 years.-TradeArabia News Service




Tags: Jobs | Saudi Aramco | McDermott | IKTVA |

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