Saudi Aramco awards Long Term Agreements for its brownfield projects

Saudi Aramco announced in a statement, a new contracting strategy for the Company’s oil and gas brownfield and plant upgrade projects.

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 contracting strategy, contractors’ companies were invited to submit their proposals, and after a thorough evaluation process, eight companies have been selected to carry out the work:

1. Consortium of Nasser Saeed Al-Hajri And Contracting /Samsung EPC Co. Ltd.
2. Daelim Saudi Arabia Co. LTD.
3. Engineering for The Petroleum and Process Industries (Enppi) Branch.
4. GS Construction Arabia Co. Ltd.
5. Snamprogetti Engineering and Contracting Co. Ltd. (Saipem).
6. JGC Gulf Engineering Co. Ltd.
7. Branch of Technip Italy S.P.A.
8. Branch of Hyundai Engineering and Construction Co. LTD.

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.

The contracts are established for a period of six years with an option to exercise another six years extension.

In addition, the contracts are developed with a special emphasis on improving Saudization, local content and supply chains through Aramco’s In-Kingdom Total Value Add (IKTVA) program, helping Aramco to meet its IKTVA targets.

The contracts mandate a minimum commitment to use 39% local content and supply chains initially, increasing to a 60% commitment within six years.

Read Also: Saudi Arabia signed deal of $18 billion to boost Marjan and Berri oilfields’ production

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