Riyadh- Mubasher: The Saudi Arabian Oil Company (Saudi Aramco) announced a new contracting strategy for its oil and gas brownfield and plant upgrade projects, with a focus on establishing new businesses and developing partnerships based on sustainability and new technologies.

Eight companies have been awarded Long-Term Agreements (LTAs) that will significantly help develop strong and sustainable domestic Engineering Procurement Construction (EPC) entities for the longer term, according to a press release on Wednesday.

These agreements are for a six-year base period and extendable for an additional six years.

The companies are, Consortium of Nasser Saeed Al-Hajri And Contracting /Samsung EPC Co. Ltd, Daelim Saudi Arabia Co. LTD, Engineering for The Petroleum and Process Industries (Enppi) Branch, GS Construction Arabia Co. Ltd, Snamprogetti Engineering and Contracting Co. Ltd. (Saipem), JGC Gulf Engineering Co. Ltd, Branch of Technip Italy S.P.A., and Branch of Hyundai Engineering and Construction Co. LTD.

The scope of the LTAs includes engineering, procurement, construction, start-up and pre-commissioning of each project, as well as the installation of the upgraded facilities in the designated operating areas.

Moreover, the contracts are developed with a special emphasis on improving Saudisation, local content, and supply chains. The contracts mandate a minimum commitment to using 39% local content and supply chains initially, increasing to a 60% commitment within six years.

“We are delighted to have concluded these LTAs as part of our new strategy, which offers a number of benefits to Aramco and our partners, and it will have a positive impact on the business environment and economic activities in the kingdom,” said Aramco’s Technical Services Senior Vice President, Ahmad A. Al Sa'adi.

These LTAs which are associated with huge business which allow us to boost the performance of our brownfield and upgrade projects through new technologies and pioneering environmental sustainability fundamentals, while improving contract procurement and construction phases,” added Al Sa'adi.