Saudi Aramco has announced the award of long-term agreements (LTAs) with eight companies, focused on brownfield and plant upgrades.
Agreements run for six years, with the possibility of extending for another six years. The company said the deals would support local businesses and help develop domestic engineering, procurement and construction (EPC) entities.
The eight winning companies are: Consortium of Nasser Saeed Al-Hajri And Contracting /Samsung EPC Co.; Daelim Saudi Arabia Co.; Engineering for The Petroleum and Process Industries (Enppi) Branch; GS Construction Arabia Co.; Snamprogetti Engineering and Contracting Co. (Saipem); JGC Gulf Engineering Co.; a unit of Technip Italy; and a unit of Hyundai Engineering and Construction Co.
The awards mark the launch of a new contracting strategy for Aramco, the company’s technical services senior vice president Ahmad Al Sa’adi said.
The LTAs “allow us to boost the performance of our brownfield and upgrade projects through new technologies”, he said, while also “pioneering environmental sustainability fundamentals [and] improving contract procurement and construction phases”.
The executive went on to say it would continue developing domestic content “through achievable employment targets. This is very important to us, as well as contribute to our [In-Kingdom Total Value Add] IKTVA target to increase local content.”
The contracts require a minimum 39% local content and supply chain involvement initially. This rises to a 60% commitment within six years.
The LTAs cover EPC work, in addition to start-up and pre-commissioning. The awards include installation of upgraded facilities, the company said.