McDermott International said Wednesday that it has been awarded a lump sum contract by Saudi Aramco for brownfield work in various offshore Saudi Arabia fields.
The package of various engineering, procurement, construction and installation projects that make up the lump sum award represent the largest single award for McDermott’s Middle East Area operations in company history, the company said.
Revenue from the fixed-price award will be included in McDermott’s third quarter 2015 backlog.
Work on the contract is expected to be executed through the second quarter of 2018.
The exact value of the contract was not disclosed.
The award follows the June 2015 signing of a second Long Term Agreement between McDermott and Saudi Aramco for engineering, procurement, construction and installation opportunities in various fields offshore Saudi Arabia.
“Our detailed knowledge and understanding of Saudi Aramco’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 McDermott’s local knowledge are critical to future success as we execute these and other projects for Saudi Aramco,” McDermott’s President and CEO David Dickson said.
During the execution of the projects under the fixed price contract, McDermott said a significant portion of the engineering and fabrication scope is expected to be carried out by its engineering office in Al Khobar and fabrication facility in Dammam.
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 McDermott’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.
“As one of the original two contractors for Saudi Aramco’s first LTA in 2007, we understand Saudi Aramco’s offshore fields, standards and specifications – and the value that Saudi Aramco places in McDermott’s fully integrated EPCI solutions,” McDermott’s Vice President, Middle East Tom Mackie said.