The combined package is the largest single award in the history of McDermottâ€™s Middle East Area and follows signing of a Long Term Agreement in June 2015
McDermott International announced on Thursday that it has been awarded a lump sum contract by Saudi Aramco for brownfield work in various fields offshore Saudi Arabia.
Work on the contract is expected to be executed through the second quarter of 2018. The award follows the June 2015 signing of a second Long Term Agreement (LTA) between McDermott and Saudi Aramco for engineering, procurement, construction and installation (EPCI) opportunities in various fields offshore Saudi Arabia.
The package of various EPCI projects that make up the lump sum award represent the largest single award for McDermottâ€™s Middle East Area operations in company history. Revenue from the fixed-price award will be included in McDermottâ€™s third quarter 2015 backlog.
â€œWinning this important award and signing the new LTA sends a clear signal that our increased engagement with key clients is generating concrete results,â€ said David Dickson, McDermottâ€™s President and CEO. â€œOur detailed knowledge and understanding of Saudi Aramcoâ€™s objectives, as well as our proven excellence in the Kingdom and the region continue to set us apart. Delivering on strong project execution and integrating McDermottâ€™s local knowledge are critical to future success as we execute these and other projects for Saudi Aramco.â€
Tom Mackie, McDermottâ€™s Vice President, Middle East, said, â€œAs one of the original two contractors for Saudi Aramcoâ€™s first LTA in 2007, we understand Saudi Aramcoâ€™s offshore fields, standards and specifications â€“ and the value that Saudi Aramco places in McDermottâ€™s fully integrated EPCI solutions.â€
During the execution of the projects under the fixed price contract, McDermott plans to maximize in-Kingdom execution activities with a significant portion of the engineering and fabrication scope expected to be carried out by its engineering office in Al Khobar and fabrication facility in Dammam, respectively.
Additional services are expected to be provided by McDermott engineering teams in Dubai, United Arab Emirates and Chennai, India. Procurement is expected to be managed by McDermottâ€™s Global Procurement Office based in Dubai and vessels from the McDermott global fleet, including specialized shallow-water installation vessels, are scheduled to undertake offshore installation.