Saudi Aramco extends engineering contract with WorleyParsons

29 April 2013

Australian engineering company signs two-year extension for the maintain potential programme

Saudi Aramco has decided not to tender the engineering services contract, the Maintain Potential Programme (MPP) and has instead awarded Australia’s WorleyParsons an extension to its current deal that will run until 2015.

The MPP covers the maintenance schedules for all of Aramco’s offshore facilities and has been executed by Australia’s WorleyParsons since 2003. MEED reported that prequalification documents had been sent out to companies interested in bidding for the MPP contract, but a tender did not follow.

“The documents went out late last year, but then there was no tender,” says an oil and gas source working in Saudi Arabia. “It looks like they are sticking with WorleyParsons until 2015, but there still might be another contract that covers some sort of offshore work.”

Aramco is considering another engineering services deal, but it would not be on the same scale of the MPP. The source says that this is just being considered and no scope is available.  

WorleyParsons has always indicated that it would be keen to sign a new contract for the MPP, but Aramco had seemed reluctant to extend the deal further and wanted a new tender process.

The MPP is a large contract and WorleyParsons has 350 personnel working on it in the Eastern Province of the kingdom.  Many of the personnel working on the scheme are engineers.

According to its website, since 2003, the work WorleyParsons has delivered includes 40 new platforms, 85 platform upgrades, 165km of pipelines, 100km of submarine power cables, five cranes and more than 300 well hook-ups.

The MPP is separate from the general engineering services plus (GES plus) contract that Saudi Aramco has signed with five major engineering consultancies, including WorleyParsons.  

Aramco also has a long-term agreement with the US’ McDermott and Italy’s Saipem, which covers engineering, procurement and construction work for its offshore operations.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.