Saudi Aramco is planning to tender a security defence contract that could be worth as much as $1bn, to secure its extensive portfolio of offshore assets in the Gulf.

The US’ Raytheon is currently conducting the front-end engineering and design (feed) for the scheme from its UK office. Prequalification for the main contract is under way and a main tender package is expected in the first quarter of 2015.

The scope of works includes:

• 15 patrol vessels
• Long range radar system 
• Cameras and early detection systems on all offshore assets
• Central control centre located at Ras Tanura in the Eastern Province

Early reports suggest that the original budget of $500m could double to $1bn by the end of the main contract tendering stage. Raytheon is already evaluating the tender for the patrol vessels and they will be novated into the final contract.

“Bids for the vessels are above budget and this is expected to contribute to the increased budget,” says a source based in Saudi Arabia. “Defence contracts rarely come in on budget.”

The defence contractors vying to bid for the main tender include:

• Airbus (France-based)
• Boeing (US)
• General Dynamics (US)
• L-3 Communications (US)
• Raytheon (US)

Saudi Aramco is ramping up the security of all of its assets and wants to secure its offshore assets from any potential attacks. The company has always insisted that its assets are as secure as a military base and that each has elaborate countermeasures in place to repel a potential attack.

“Aramco’s offshore operations are increasing and it believes that it is now time to ensure that all of its Gulf facilities have maximum protection,” says the Saudi source.

Security experts in the past have cited a number of potential dangers to the assets of the world’s largest oil exporter. These include suicide terrorist attacks from the air or sea as well as longer range rocket attacks from small vessels.

Saudi Aramco was not available for comment when contacted by MEED.