Saudi Aramco picks Abu Dhabi firm for offshore contract

Photo used for illustrative purpose only

The Saudi Aramco offshore projects department has awarded a long-term agreement (LTA) to Abu Dhabi's National Petroleum Construction Company (NPCC).

The LTA is for the execution of Saudi Aramco's offshore development programme.

In June 2015, four LTA contracts were awarded to internationally renowned engineering, procurement, fabrication and offshore installation contractors.

The LTA was signed by Saudi Aramco project management executive director Tofiq Gabsani and Aqeel Madhi, CEO of NPCC.

Under the LTAs, contractors will be entrusted with the responsibility to deliver a huge number of offshore oil and gas producing platforms, tie-in platforms, pipelines, power cables and all the related facilities required under the current master plan for Saudi Aramco's offshore fields.

The LTA contracts have a fixed duration of six years with options to be extended for up to 12 years in total.

Ahmad Al Saadi, senior vice-president of Saudi Aramco's technical services, said: "This fifth strategic LTA is needed for the successful execution of the complex and extensive offshore projects to be completed in the offshore oil and gas fields in the Arabian Gulf - all within an aggressive schedule."

He also underlined the importance of local procurement and working with local companies, contractors and employing Saudis as outlined in the company's in-kingdom total value add programme.

Madhi said: "We consider Saudi Aramco a strategic partner for us, and will spare no effort to ensure we meet the expectations of Saudi Aramco in terms of performance, quality and adherence to delivery schedule."

Saudi Aramco produced one in every eight barrels of the world's crude oil supply.

- haseeb@khaleejtimes.com