DHAHRAN — Saudi Aramco on Wednesday (March 8) signed a Memorandum of Understanding (MOU) with McDermott International (MDR) for the integrated engineering procurement construction and installation of offshore platforms for McDermott’s growing Middle East and other regional oil and gas development markets at the King Salman International Complex for Maritime Industries and Services.
The project is part of Saudi Aramco’s plan to expand its local supply chain, which will improve the company’s agility while driving additional economic and human capital development, as well new employment opportunities in the Kingdom of Saudi Arabia in support of the goals of “Vision 2030.”
MDR is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for offshore developments worldwide, with over 55 years of experience in the region and in working for Saudi Aramco. The selection of MDR was the result of a rigorous evaluation process which followed extensive negotiations with several world-class players in the offshore EPCI services field.
The project aims to create a world-class provider of offshore EPCI services throughout the Middle East and regional markets. It will build on the existing relationship between Saudi Aramco and MDR to localize this part of the supply chain, which would improve efficiency while increasing local content, export of energy goods and services, and further development of the Kingdom’s economy. In this context, the project’s key business principles are focused on the following:
n A strategic, phased transition of MDR’s regional business operations to Ras Al Khair according to a planned timetable – including building a new fabrication and marine complex expected to use state-of-the-art facilities, increased automation and an optimized layout
n High level of Saudization of employee headcount across all functional areas of the organization, and associated increased scale of training and talent development in KSA; and support localizing the supply chain to the greatest extent possible including supplier development to increase availability of local content and further diversification in KSA.
Aramco has always made significant and continuous contributions to the development of the Kingdom’s economy. Over the years, it has demonstrated its commitment to supporting the development of new industries in the Kingdom by helping attract, establish, and promote energy-related industries that are globally competitive and create significant employment opportunities for Saudi citizens. This EPCCI facility is an example of such efforts and will mutually benefit Saudi Aramco, MDR, and The Kingdom of Saudi Arabia by delivering sustainable economic value. — SG