- Eight companies have been awarded Long-Term Agreements (LTAs). These agreements are for a six-year base period and extendable for an additional six years.
- The LTAs will significantly support growth in the local business community and help develop strong and sustainable domestic Engineering Procurement Construction (EPC) entities for the longer term.
- Each LTA will support growth in employment and the development of the workforce in Saudi Arabia.
Aramco has today announced a new contracting strategy for the Company's oil and gas brownfield and plant upgrade projects. The strategy focuses on establishing new businesses and developing partnerships based on sustainability and new technologies via Aramco's giant projects by awarding long-term contracts to reputable and experienced contractors to improve cost efficiency and the quality and safety of the projects.
Following Aramco's approval of the new contracting strategy, contractors' companies were invited to submit their proposals, and after a thorough evaluation process, eight companies have been selected to carry out the work:
- Consortium of Nasser Saeed Al-Hajri And Contracting /Samsung EPC Co. Ltd.
- Daelim Saudi Arabia Co. LTD.
- Engineering for The Petroleum and Process Industries (Enppi) Branch.
- GS Construction Arabia Co. Ltd.
- Snamprogetti Engineering and Contracting Co. Ltd. (Saipem).
- JGC Gulf Engineering Co. Ltd.
- Branch of Technip Italy S.P.A.
- Branch of Hyundai Engineering and Construction Co. LTD.
The scope of the LTAs includes engineering, procurement, construction, start-up and pre-commissioning of each project, as well as the installation of the upgraded facilities in the designated operating areas. The contracts are established for a period of six years with an option to exercise another six years extension.
In addition, the contracts are developed with a special emphasis on improving Saudization, local content and supply chains through Aramco's In-Kingdom Total Value Add (IKTVA) program, helping Aramco to meet its IKTVA targets. The contracts mandate a minimum commitment to use 39% local content and supply chains initially, increasing to a 60% commitment within six years.