Aramco announced on Wednesday a new contracting strategy for the Company’s oil and gas brownfield and plant upgrade projects.
The strategy focuses on establishing new businesses and developing partnerships based on sustainability and new technologies via Aramco's giant projects by awarding long-term contracts to reputable and experienced contractors to improve cost efficiency and the quality and safety of the projects.
In this context, eight companies have been awarded Long-Term Agreements (LTAs) for a six-year base period. The agreements are extendable for an additional six years.
According to Aramco, the LTAs will significantly support growth in the local business community and help develop strong and sustainable domestic Engineering Procurement Construction (EPC) entities for the longer term.
Each LTA will also support growth in employment and the development of the workforce in Saudi Arabia.
For his part, Ahmad A. Al Saadi, Aramco’s Technical Services Senior Vice President said: “We are delighted to have concluded these LTAs as part of our new strategy, which offers a number of benefits to Aramco and our partners, and it will have a positive impact on the business environment and economic activities in the Kingdom."
Al Saadi said the LTAs will boost performance and upgrade projects through new technologies and pioneering environmental sustainability fundamentals.
"It will enable us to continue developing homegrown talent in Saudi Arabia through achievable employment targets. This is very important to us, as well as contribute to our IKTVA target to increase local content,” he added.
