JEDDAH — McDermott International, Inc, an American multinational engineering, procurement, construction and installation company with operations in Saudi Arabia, is committed to localizing operations and developing local workforce, its President and Chief Executive Officer David Dickson said in an interview.

“Absolutely, McDermott is committed to localizing both our operations and developing our local workforce. We look forward to continuing to recruit from and develop the pool of highly-educated local talent in Saudi Arabia. We are proud of the steps we have already taken in this area, while also recognizing there is more we can do in the future. Saudi Arabia’s talented workforce combined with McDermott’s world-class training programs will further enhance McDermott’s Middle East operations.”

Earlier, the company has entered into two MoUs with Saudi Aramco for the long-term land lease at the new maritime facility in Ras Al Khair, Saudi Arabia and to expand and develop the company’s physical and human presence in the Kingdom.

Both MOUs are in support of the Kingdom’s Vision 2030 and Aramco’s In-Kingdom Total Value Add initiative. These strategic MOUs enable us to build a new, modern facility with the latest technology and automation, meaning we can provide a better, more efficient and comprehensive service to our customers in the region and beyond.”

He said the agreement, once finalized, further builds upon McDermott's leadership position in the Middle East and “our long-standing relationships with our Middle East customers. Both MoU announcements highlight the importance we place on leadership and local presence, innovation and meeting or exceeding our clients’ needs,” he pointed out.

Excerpts from the interview follow:

• What sort of value will this MoUs bring to KSA?

The lease and related arrangements contemplated in this MOU enable us to build new, state-of-the-art facilities to support McDermott’s Middle East operations. Both MOUs are in support of Saudi Arabia’s Vision 2030 and Aramco’s In-Kingdom Total Value Add initiative and will grow McDermott’s presence significantly in KSA. Doing so aligns well with the initiatives being driven in-Kingdom, and with our desire to bring localized solutions to our clients’ needs whenever possible.

Once fully operational, the new facilities at Ras Al Khair are expected to significantly increase our Middle East fabrication capacity from 8-million manhours per year up to 16-million manhours per year, allowing us to better serve our Middle East area and other customers. It is our intention that these facilities and infrastructure will utilize advanced automation techniques and the latest technologies to drive industry leading safety and efficiency throughout our operations. This along with the economies of scale and increased capacity that the new yard will bring will enable us to increase our competitive positioning in the region.

McDermott views the future facilities in KSA as an evolution of its long history in the region. This is a strategic move that reinforces our longstanding commitment to the region and will help us maintain our leadership position in the Middle East.

• Apart from increasing McDermott’s local footprint in the Kingdom, will the company be bringing in Saudi talent to fill up the ranks?

Absolutely, McDermott is committed to localizing both our operations and developing our local workforce. We look forward to continuing to recruit from and develop the pool of highly-educated local talent in Saudi Arabia. We are proud of the steps we have already taken in this area, while also recognizing there is more we can do in the future. Saudi Arabia’s talented workforce combined with McDermott’s world-class training programs will further enhance McDermott’s Middle East operations.

• With KSA looking to diversify its economy away from O&G dependency (Vision 2030, etc.), what is a company like McDermott doing to acclimate to the changing of the tides? What do you foresee the next 10 years look like?

Oil and gas will continue to have an important role in the world’s energy demands for the foreseeable future. McDermott has a rich history in driving the energy industry forward and we expect to continue to be leaders in the evolution of the industry.

We are taking a different approach to how we do business and want to increase work hand-in-hand with our client to develop new and innovative solutions. Our new future facilities in Saudi Arabia are a great example of McDermott driving the industry forward. These new facilities will be absolutely state-off-the-art, we want to incorporate the latest in technology and innovation, and recognize that this will mean developing new skills within our workforce. We look forward to leveraging the talented local workforce to maximize our presence in-Kingdom. These efforts are directly aligned with Saudi Arabia’s Vision 2030.

We also hope to play a key role in developing some of the infrastructure for wind power and other renewable markets that will increasingly become an important part of the energy mix. Many of the skills we have in fabrication, installation and project delivery are very applicable to these markets, and we believe it is a good adjacent market that is worth pursuing. Of course the offshore oil and gas industry will remain at the heart of what we do, but there are opportunities to extend our reach beyond this.

• What goals are you looking to meet within the Saudi market as you implement these new projects?

First and foremost we want to continue to be an industry leader in QHSES, above all else we value the health and safety of everyone who works for and with McDermott. We have an outstanding record of project delivery, and our goal is to do more in Saudi and to do it to the highest possible standards.

We are fully committed to supporting Saudi Aramco’s In-Kingdom Total Value Add initiative, we have come a long way, but there is more for us to do and we are focused on achieving this

Another one of our key focus areas and priorities at McDermott is our customer relationships. Strong relationships are the foundation of our success and lead to the best total solutions. McDermott has these strong relationships with several national oil companies. We are proud to have worked closely with Saudi Aramco for many years, and that we have delivered so many critical projects for them. This is a relationship that we truly value and which we look forward to developing for many more years.

As I look at the Middle East overall, we've raised the bar, the team have done a fantastic job in delivering financial results, operational performance, all underpinned by an excellent safety performance. Looking forward we are expanding our capability and footprint in KSA, we see as a growth market and we want to be able to grow to support it.