- Announcement confirms May MEED report
- McDermott thought to be one of four winners
McDermott has been awarded a deal by Saudi Aramco for long-term brownfield work on various offshore fields, the US-based company confirmed.
MEED revealed in May that McDermott was one of four contractors selected for Aramcos new Long-Term Agreement (LTA) with suppliers to provide engineering, procurement, construction and installation (EPCI) services on its offshore facilities.
The LTA, which was signed on 10 June, establishes the terms and conditions by which McDermott can bid on future EPCI opportunities in various fields, McDermott said.
McDermott already executes work for Aramco under an existing LTA in place since 28 June 2007.
As a long-time partner and service provider, we understand Aramcos offshore fields, standards and specifications and the value that Aramco places in McDermotts fully-integrated EPCI solutions, said Tom Mackie, McDermotts vice president for the Middle East.
According to industry sources, McDermotts deal uniquely includes a guaranteed lump-sum element with an estimated value of more than $1.5bn to carry out offshore EPC work over the first 32 months of the agreement.
The scope of the lump-sum element covers both rehabilitation of offshore facilities as well as new projects, including platforms, pipelines and cables.
Other companies expected to sign LTAs with Aramco include US-based Dynamic Industries, Italys Saipem, and a joint venture of Indias Larsen & Toubro and Singapore-based Emas.