Tuesday 1 December 2020
 
»
 
»
NEW CONTRACTING STRATEGY

Aramco inks LTAs with global majors for key oil, gas projects

RIYADH, 13 days ago

State oil giant Saudi Aramco has awarded major long-term engineering procurement construction (EPC) agreements to eight companies for its oil and gas brownfield projects.
 
These LTAs, which are for a six-year base period and extendable by an additional six years,  will significantly support growth in the local business community and help develop strong and sustainable domestic EPC entities for the longer term, said a statement from Saudi Aramco.
 
The contracts are developed with a special emphasis on improving Saudization, local content and supply chains, it added.
 
Saudi Aramco said these LTAs are part of its new contracting strategy for development of major energy projects in the kingdom. 
 
The strategy focuses on establishing new businesses and developing partnerships based on sustainability and new technologies via Aramco's giant projects by awarding long-term contracts to reputable and experienced contractors to improve cost efficiency and the quality and safety of the projects.
 
Following Aramco’s approval of the new strategy, contracting companies were invited to submit their proposals. And after a thorough evaluation process, the following eight companies have been selected to carry out the work:
*Consortium of Nasser Saeed Al Hajri And Contracting/Samsung EPC Company
*Daelim Saudi Arabia Company
*Engineering for The Petroleum and Process Industries (Enppi) Branch.
*GS Construction Arabia Company
*Snamprogetti Engineering and Contracting Company (Saipem)
*JGC Gulf Engineering Company
*Branch of Technip Italy
*Branch of Hyundai Engineering and Construction Company.
 
The Saudi oil giant said the scope of the LTAs 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. 
 
Each LTA will support growth in employment and the development of the workforce in Saudi Arabia, it added.
 
Ahmad A. Al Sa'adi, Aramco’s Technical Services Senior VP, said: "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."
 
"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," stated Al Saadi.
 
"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 added.-TradeArabia News Service



Tags:

More Energy, Oil & Gas Stories

calendarCalendar of Events

Ads