McDermott, a leading provider of integrated engineering, procurement, construction and installation (EPCI) services, has been awarded a major contract by oil giant Saudi Aramco at its Safaniya onshore and offshore field.

The contract, which is likely to be in the range of $750 million to $1.5 billion, will see McDermott  provide a full suite of EPCI services for nine slipover jackets, 10 production deck modules, an electrical distribution platform and associated cables and pipeline.

The combined weight of the structures will exceed 20,000 tonnes, with the pipelines totalling over 26 km and the cables totalling around 22 km.

On the win, Linh Austin, McDermott vice-president for Middle East and Caspian, said: "We continue to receive contracts under the long-term agreement for Saudi Aramco’s most considerable projects. This award is a continuation of our long-standing relationship and successful track record with Saudi Aramco."

The contract award builds on the long-term relationship with Aramco and also supports Saudi Arabia’s Vision 2030.

“We plan to execute much of the project from our Al Khobar office and Dammam fabrication facility, increasing our local content in country, in support of Saudi Arabia’s Vision 2030 and Aramco’s In-Kingdom Total Value Add (IKTVA) programme,” he stated.

Work on the contract is expected to begin immediately and will be reflected in McDermott’s fourth quarter 2017 backlog.

Located approximately 201 km north of Dhahran in the Arabian Gulf, the Safaniya oil field is currently the largest offshore oil field in the world, by production. This brownfield project is the next phase of a wider campaign to replace aging facilities with electrified platforms to maintain and enhance the field’s production.

McDermott said it remains committed to a nine initiative plan to increase its contribution to the country’s localization efforts and aid Saudi Aramco in meeting its 2021 objectives.

The company plans to use its engineering and procurement teams in Dubai (UAE), Chennai (India) and Al Khobar (Saudi Arabia) for the project.

Construction is expected to take place at McDermott’s facilities in Dammam, Saudi Arabia and Jebel Ali, Dubai. Vessels from McDermott’s global fleet are scheduled to perform the installation work.-TradeArabia News Service