JV firm will primarily support Saudi Aramco
Saipem has inked an agreement with Saudi construction company Abdel Hadi Abdullah Al Qahtani & Sons Company (AHQ). The firm says the deal enables the creation of a joint venture company in Saudi Arabia, which combines Saipem’s EPC competences and skills with AHQ’s knowledge and experience in logistic, construction and supply chain.
According to a statement, the new company aims to maximise local value creation and become a first-tier player in the execution of onshore construction works as well as of onshore pipeline EPC projects.
“Saudi Arabia has been a core market to Saipem from the outset and our ambition is to maintain our EPC leading role in the country. We are committed to establishing this joint venture with AHQ in bid to harness synergies to support our major client Saudi Aramco,” said chief operating officer (Onshore E&C) Maurizio Coratella.
He added, “A central feature of the partnership is the possibility to operate in compliance with the requirements of the IKTVA (In-Kingdom Total Value Add) program launched by Saudi Aramco as an integral part of its contracts to achieve 70% localization of spending by 2021.”