SNC-Lavalin picks up Oman commissioning contract

09 March 2017

Five-year agreement follows long-term engineering deal in Saudi Arabia earlier this year

Canada’s SNC-Lavalin has picked up a commissioning and support services agreement from Petroleum Development Oman (PDO), following up on a five-year services contract from Saudi Aramco earlier this year.

Oman’s largest oil and gas producer PDO has hired SNC-Lavalin subsidiary Kentz Overseas Company oil and gas projects within Oman, such as the Rabab Harweel Integrated Project and the Yibal Khuff Project.

The contract, which extends from 2017 to 2022, covers full systems completions, commissioning and start-up management, planning, consultancy, supervision, execution and administration of various oil and gas and related facilities.

In addition, SNC-Lavalin will carry out technical training programmes for local Omanis in commissioning and start-up activities.

SNC-Lavalin has had a successful month in Oman, previously picking up the engineering, procurement and construction (EPC) deal on the estimated $600m Luban ammonia plant from Salalah Methanol Company (SMC).

Earlier this year the joint venture SNC-Lavalin Fayez Engineering (SLFE) was awarded a five-year extension to its existing General Engineering Services Plus (GES+) contract with Saudi Aramco.

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 programmes.

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

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.