Saudi Aramco has signed long-term agreements (LTAs) with eight companies for its oil and gas brownfield projects.
The move comes after the Saudi Arabian state-owned firm adopted a new contracting strategy for its oil and gas brownfield and plant upgrade projects.
The strategy emphasises sustainability and new technologies and involves contracting experienced firms for the long term to improve the cost efficiency and safety of the projects.
Saudi Aramco selected the eight firms through an evaluation process after companies submitted their proposals.
The selected companies include the consortium of Nasser Saeed Al-Hajri and Contracting/Samsung EPC, Daelim Saudi Arabia, Engineering for The Petroleum and Process Industries (Enppi) Branch, and GS Construction Arabia.
Snamprogetti Engineering and Contracting, JGC Gulf Engineering, which is a branch of Technip Italy, and a branch of Hyundai Engineering and Construction were also among the selected contractors.
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By GlobalDataThe scope of works will include engineering, procurement, construction, start-up and pre-commissioning of the projects. It also includes installation of the upgraded facilities in the designated operating areas.
All of the contracts have a six-year term with another six-year extension option.
The contracts are also expected to support the local industry as the contractors are mandated to use a minimum of 39% local content initially, gradually increasing to 60% within six years.
Aramco Technical Services senior vice-president Ahmad A Al Sa’adi said: “These LTAs which are associated with huge business which allow us to boost the performance of our brownfield and upgrade projects through new technologies and pioneering environmental sustainability fundamentals, while improving contract procurement and construction phases.
“In addition, it will enable us to continue developing homegrown talent in Saudi Arabia through achievable employment targets.”
Separately, Reuters reported that Saudi Aramco is working to raise $8bn from a five-part bond deal as low oil prices weakened its finances.
Earlier this year, the company discovered two oil and gas fields in northern sections of Saudi Arabia.
