McDermott wins lump sum contract from Saudi Aramco
HOUSTON, August 28, 2015
McDermott International, a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments, has won a lump sum contract from Saudi Aramco for brownfield work in various fields offshore Saudi Arabia.
The work on the contract is expected to be executed through the second quarter of 2018, said a statement.
The award follows the signing of a second Long Term Agreement (LTA) in June between McDermott and Saudi Aramco for EPCI opportunities in various fields offshore Saudi Arabia, it said.
The package of various EPCI projects that make up the lump sum award represent the largest single award for McDermott’s Middle East Area operations in company history.
The revenue from the fixed-price award will be included in McDermott’s third quarter 2015 backlog.
David Dickson, president and chief executive officer, McDermott, said: “Winning this important award and signing the new LTA sends a clear signal that our increased engagement with key clients is generating concrete results.
“Our detailed knowledge and understanding of Saudi Aramco’s objectives, as well as our proven excellence in the Kingdom and the region continue to set us apart. Delivering on strong project execution and integrating McDermott’s local knowledge are critical to future success as we execute these and other projects for Saudi Aramco.”
During the execution of the projects under the fixed price contract, McDermott plans to maximise in-kingdom execution activities with a significant portion of the engineering and fabrication scope expected to be carried out by its engineering office in Al Khobar and fabrication facility in Dammam, respectively.
Additional services are expected to be provided by McDermott engineering teams in Dubai, UAE and Chennai, India.
The procurement is expected to be managed by McDermott’s Global Procurement Office based in Dubai and vessels from the McDermott global fleet, including specialised shallow-water installation vessels, are scheduled to undertake offshore installation. - TradeArabia News Service
