Saudi energy giant Aramco awarded major long-term agreements to eight companies for its oil and gas brownfield projects, it announced in a statement on Wednesday.
Saudi Arabia's state-owned oil company Aramco said the contracts are developed with a special emphasis on improving Saudization, local content and supply chains for a six-year base period, which will be extendable for an additional six years.
The company expects the deals to support growth in employment and the development of the workforce in Saudi Arabia.
The companies include a consortium of Nasser Saeed Al-Hajri and Contracting, Samsung EPC, Daelim Saudi Arabia, Engineering for the Petroleum and Process Industries (Enppi) Branch, GS Construction Arabia, Snamprogetti Engineering and Contracting (Saipem), JGC Gulf Engineering, a branch of Technip Italy S.P.A. and a branch of Hyundai Engineering and Construction.
The scope of the long-term agreements 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 company said.
Ahmad Al Saadi, Aramco’s technical services senior vice president, said the agreements “will enable us to continue developing homegrown talent in Saudi Arabia through achievable employment targets.”
He said the company also expects the deals to contribute Aramco’s In-Kingdom Total Value Add (IKTVA) program, which aims to increase local content and supply chains.
On Monday, Aramco had announced plans to sell billions of dollars in international bonds as it seeks to fund a $75 billion dividend commitment, most of which goes to the government, its main shareholder.
By Sibel Morrow