McDermott confirms Saudi Aramco award

McDermott has confirmed a major contract award from Saudi Aramco for engineering, procurement, construction and installation (EPCI) services in the Safaniya onshore and offshore field off Saudi Arabia. 

To remind, Saudi Aramco recently signed contracts with several oil and gas service contractors for mega projects aiming to increase gas production. The total worth of contracts awarded amounted to nearly $4.5 billion.

According to its statement on Monday, November 20 the contract awarded to McDermott includes the full suite of EPCI services including design, fabrication, installation and pre-commissioning of 9 slipover jackets, 10 production deck modules, an electrical distribution platform and associated cables and pipelines. The combined weight of the structures will exceed 22,000 short tons (20,000 metric tons), with the pipelines totaling over 16 miles (26 kilometers) and the cables totaling around 13 miles (22 kilometers).

“McDermott continues 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,” said Linh Austin, McDermott Vice President, Middle East and Caspian. “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) program.”

Work on the contract is expected to begin immediately and will be reflected in McDermott’s fourth quarter 2017 backlog. Located approximately 125 miles (201 kilometers) north of Dhahran in the Arabian Gulf, the Safaniya oil field is currently the largest offshore oil field in the world, by production. This brownfield project is the next phase of a wider campaign to replace aging facilities with electrified platforms to maintain and enhance the field’s production.

McDermott plans to use its engineering and procurement teams in Dubai, Chennai and Al Khobar, Saudi Arabia. Construction is expected to take place at McDermott’s facilities in Dammam, Saudi Arabia and Jebel Ali, Dubai. Vessels from McDermott’s global fleet are scheduled to perform the installation work.

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