Saudi Aramco inks land lease agreement with McDermott unit
RIYADH, March 26, 2019
State oil giant Saudi Aramco has signed a land lease agreement with McDermott Arabia Company for the establishment of a fabrication facility located within the King Salman International Complex for Maritime Industries in the Ras Al Khair region of Saudi Arabia.
McDermott Arabia Company is a wholly-owned subsidiary of McDermott International, a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry.
This is pursuant to a MoU signed between Saudi Aramco and McDermott, said a statement from the company.
The new facility will be used for large-scale fabrication of offshore platforms and onshore/offshore modules.
To further enhance project execution capabilities in Saudi Arabia, McDermott will also expand its in-country engineering and procurement offices, as well as establish a new marine base in the Eastern Province to support the installation of offshore platforms, subsea pipelines and cables, skids, and associated structures and assemblies.
“This facility will serve as a major engineering, procurement, construction, and installation (EPCI) hub for not only the kingdom, but for the GCC region” said Ahmad Al Sa'adi, the senior vice president of technical services at Saudi Aramco.
“Having this facility with International Maritime Industries (IMI) in the King Salman International Complex for Maritime Industries offers an integrated portfolio of maritime products and services,” remarked Mohammad Al Assaf, Saudi Aramco vice-president of New Business Development.
“The localisation of these capabilities will contribute to diversifying the economy, create almost 7,000 jobs, and achieve a target of 60 per cent Saudisation by 2030,” stated Al Assaf.
The new facility in Ras Al Khair will be located near the Jubail Industrial City on the kingdom’s east coast. It will cover an area of 1.15 million sq m and will utilise cutting-edge technologies to ensure world-class standards in safety, quality and efficiency.
David Dickson, McDermott’s president and CEO, said: "Expanding our fabrication capacity in Saudi Arabia demonstrates McDermott’s commitment to the kingdom’s Vision 2030 objectives."
"We will establish a world-class fabrication facility that enables us to better serve the needs of Saudi Aramco and other customers in Saudi Arabia and across the region," noted Linh Austin, McDermott Senior vice-president for the Middle East and North Africa.
Saudi Aramco said at peak production, the facility will have a throughput capacity in excess of 60,000 metric tonnes per year.
It will localise expertise in multiple disciplines related to the industry and is expected to create a significant number of direct and indirect job opportunities in the kingdom.
Apprenticeship and training programmes will also be provided to ensure that a sufficient number of qualified nationals of the kingdom are available for hire to meet the in-kingdom content requirements. The facility is expected to be operational by 2022, it added.-TradeArabia News Service