DHAHRAN, Saudi Arabia – Saudi Aramco has unveiled a new contracting strategy for its brownfield oil and gas and plant upgrade projects.
The focus will be on establishing new businesses and developing partnerships based on sustainability and new technologies, and involves long-term award (LTA) contracts carrying commitments to improve cost efficiency, quality, and safety.
After assessing proposals from various contractors, Aramco has awarded LTAs to eight companies:
- A consortium of Nasser Saeed Al-Hajri and Contracting, and Samsung EPC
- Daelim Saudi Arabia
- Engineering for The Petroleum and Process Industries branch
- GS Construction Arabia
- Snamprogetti Engineering and Contracting (Saipem)
- JGC Gulf Engineering
- Branch of Technip Italy
- Branch of Hyundai Engineering and Construction.
The LTA scope includes engineering, procurement, construction, start-up, and pre-commissioning of each project, along with installation of the upgraded facilities in the designated operating areas.
All contracts run for six years with an option for a further six-year extension.
In line with Aramco’s In-Kingdom Total Value Add program, the contract terms stipulate a minimum commitment for 39% local content and supply chains initially, rising to a 60% commitment within six years.