Saudi Aramco signs engineering deal

15 January 2017

Firm will provide services to the oil company for five years

The local/Canadian SNC-Lavalin Fayez Engineering (SLFE) has been awarded a five-year extension to its existing General Engineering Services Plus (GES+) contract with Saudi Aramco.

The new agreement also has three one-year options to extend.

Under the contract, SNC-Lavalin will be invited to bid on front-end engineering, detailed engineering and project management services to support the implementation of Saudi Aramco’s capital and sustaining capital programs in the Kingdom of Saudi Arabia. Projects will include onshore oil and gas production and processing facilities, building and infrastructure projects, as well as refining and petrochemical facilities.

SLFE is a joint venture of Canada’s SNC-Lavalin and the local Dr. Zuhair Fayez. It says it has completed over 200 projects under the GES+ initiative over the past five years, most of which were competitively bid in-Kingdom against other Saudi Aramco qualified GES+ contractors and executed out of SLFE’s head offices located in Al-Khobar, Saudi Arabia.

Aramco has signed five-year GES contract extensions with other companies. US-based Wood Group said in early January that it had secured an extension.

In November Jacobs received an extension for its Jacobs ZATE operation in Khobar, and earlier that month, US-based KBR’s Saudi joint venture engineering operation with Azmi Abdulhadi & Abdulla al-Moaibed Consulting Engineering Company (AMCDE) said it had received an extension.

Project owners want more from their contractors

Ziad Awad, SNC Lavalin

Ziad Awad, SNC Lavalin

Ziad Awad, SNC Lavalin

Oil prices are still depressed and government budgets continue to be squeezed, but with $1.1bn of new orders secured this year, Canada-based SNC Lavalin’s Middle East head remains upbeat on the opportunities available for large multinational contractors.

“The region is a growth area for us,” says Ziad Awad, senior vice-president and head of Middle East, India and Africa at the firm. “We have about 37,000 people and more than 30 per cent of our [global] workforce is in the region across all business units. Oil and gas is the predominant business and we had significant awards in the first half of this year, despite the challenging environment we are all facing.” Read more

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