Saudi Aramco has entered negotiations with several firms to form a joint-venture project management company.

The new entity, which is expected to be formed by the end of the first quarter next year, will target government infrastructure projects planned for the kingdom over the next decade.

It will sell its services to other government bodies in Saudi Arabia that are developing infrastructure. It is estimated that the potential workload will require some 15,000 staff.

A strong emphasis will be given to employing local Saudi nationals, which is one of the key goals of the government’s Vision 2030 document.

The new project management company will take considerable strain away from Aramco, which in recent years has been relied upon to deliver some of the kingdom’s biggest construction projects.

Sources close to Aramco have repeatedly said these projects have diverted the oil company’s attention away from its core hydrocarbon businesses. It is the world’s largest oil firm and produces about 10.4 million barrels of oil a day.

Multibillion-dollar schemes managed by Aramco include the King Abdullah University of Science & Technology (Kaust) and the King Abdullah Sports City development near Jeddah, the King Abdullah Petroleum Studies Research Centre (Kapsarc) in Riyadh, and the King Abdulaziz Centre for Knowledge & Culture in the Eastern Province.

Government spending in Saudi Arabia is under pressure. Riyadh is seeking consultants for a study to plan how it can reprioritise its future capital spending. It is understood the aim is to save SR70bn ($18.7bn) from planned project spending totalling SR260bn.

The study involves assessing and planning future spending for several of Saudi Arabia’s largest government departments, including the health, education, housing and transport ministries. It will focus on capital expenditure plans, but will also consider operational costs.

The study will support Saudi Arabia’s National Project Management Office (NPMO), which will oversee future capital expenditure projects in the kingdom.