New contract win builds on the long-term relationship with Aramco and supports KSA’s Vision 2030
McDermott has announced that it has been awarded a major contract by Saudi Aramco for its Safaniya onshore and offshore field.
As per the terms of the contract, the firm will provide a full suite of engineering, procurement, construction and installation (EPCI) services for 10 production deck modules, nine slipover jackets, an electrical distribution platform, as well as the cables and pipelines for the fields.
The contract is estimated to be worth between $750m to $1.5bn. McDermott also says that the combined weight of the structures at the fields will exceed 20,000 tonnes, while the pipelines and cabling at the sites will measure over 26km and 22km in length.
McDermott plans to use its engineering and procurement teams in Dubai (UAE), Chennai (India) and Al Khobar (Saudi Arabia) for the project. Construction will likely take place at the firm’s facilities in Dammam, Saudi Arabia and Jebel Ali, Dubai. The EPCI services provider will also rely on vessels from its global fleet to perform installation work.
“We continue to receive contracts under the long-term agreement for Saudi Aramco’s most considerable projects. This award is a continuation of our long-standing relationship and successful track record with Saudi Aramco. We plan to execute much of the project from our Al Khobar office and Dammam fabrication facility, increasing our local content in country, in support of Saudi Arabia’s Vision 2030 and Aramco’s In-Kingdom Total Value Add (IKTVA) programme,” said Linh Austin, McDermott vice-president for the Middle East and Caspian region.
Located 201km north of Dhahran in the Arabian Gulf, the Safaniya oil field – by production – is the largest offshore oil field in the world. The project is part of a broader campaign to replace aging facilities with electrified platforms to maintain and enhance the field’s production.
Work on the contract is expected to begin immediately and will be reflected in McDermott’s Q4 2017 backlog.