International: Domestic international.media@aramco.com: domestic.media@aramco.com Saipem has signed a long-term agreement (LTA) with Saudi Aramco for a period of twelve years, covering onshore engineering and construction activities. The agreement includes efficiency activities for existing facilities and is part of Saudi Aramco`s broader long-term plan to upgrade its facilities in the country`s Eastern Province. Aramco today announced a new contract strategy for the Company`s brownfield, oil and gas plant modernization projects. The strategy focuses on the creation of new businesses and the development of partnerships based on sustainability and new technologies through Aramco`s major projects by awarding long-term contracts to reputable and experienced contractors in order to improve the profitability as well as the quality and safety of the projects. Saudi Aramco, the world`s largest oil exporter, has awarded long-term contracts to eight contractors for a number of plant modernization projects. The framework agreement covers possible interventions in upstream and downstream facilities located in the following areas, among others: Wasit, Khursaniyah, Abu-Ali, Jubail, Berri, Ras Tanura, Qatif, Abqaiq, Shedgum, Uthmaniyah, Hawiyah, Haradh, Khurais, Ghawar. The focus is on the creation of new businesses and the development of partnerships based on sustainability and new technologies, as well as long-term supply contracts (LTAs) that include commitments to improve profitability, quality and safety. Saudi Aramco has signed long-term contracts (LTAs) with eight companies for its oil and gas brownfield projects. Maurizio Coratella, COO of the Onshore E&C Division, commented: «This new agreement with Saudi Aramco, one of our main customers and one of the most active players in the energy sector, reinforces a long-standing relationship and confirms saipem`s strategic positioning in the Middle East from a medium- and long-term perspective. It underlines the confidence and appreciation of the high quality of our services and expertise.
In particular, the agreement reinforces Saipem`s leading position as a company committed to providing tailor-made, cutting-edge technology solutions to a strategic customer. In line with Aramco`s In-Kingdom Total Value Add program, the terms of the contract initially provide for a minimum commitment for 39% of local content and supply chains, which is expected to reach 60% within six years. All contracts have a six-year term with another option to extend six years. The strategy focuses on sustainability and new technologies and includes the long-term commitment of experienced companies to improve the profitability and safety of projects. Japan`s JGC Holdings Corporation announced in a statement that its Saudi Arabian subsidiary, JGC Gulf International Co., Ltd., has signed a comprehensive agreement with Saudi Aramco for brownfield projects. According to the statement, the agreement includes various engineering, procurement and construction (EPC) works for the modernization/modification of existing oil and gas facilities owned and operated by Saudi Aramco. Under this agreement, Aramco will award the contract to one of LTA`s contractors through a competitive bidding process. «These LTAs [long-term agreements] that come with a huge company. allow us to increase the performance of our brownfield and upgrade projects,» said Ahmad Al Sa`adi, Senior Vice President of Technical Services at Aramco.
Earlier this year, the world`s largest oil exporter signed partnership agreements worth more than $21 billion with international companies to operate along its energy value chain. Saudi Aramco also signed a $110 million joint venture with Baker Hughes in the non-metallic products business. «We are pleased to have completed these LTAs as part of our new strategy, which will bring Aramco and our partners a number of benefits and have a positive impact on the business environment and economic activities in the Kingdom. These LTAs, which are associated with a huge business, allow us to increase the performance of our brownfield and upgrade projects through new technologies and revolutionary fundamentals of environmental sustainability, while improving the procurement and construction phases. In addition, it will allow us to continue to develop local talent in Saudi Arabia through achievable employment goals. .