The Saudi company, Aramco, has selected three of its preferred bidders for a $1.7 billion offshore works contract. The company has selected contractors for three major companies covering several structures. One of the structures includes the Zuluf offshore oil and gas development field in Saudi Arabia. Their combined value of project is estimated at a value of $1.7bn. Aramco has issued notices of offshore work contract award for tender numbers 135, 136, and 237. The tenders were awarded under its Contract Release and Purchase Order (CRPO) system. The contracted companies are mandated to execute construction, engineering, procurement, and installation of the various projects awarded to them.
The contracted companies awarded the offshore works under CRPOs 135, 136, and 137 include Lamprell which is handling project CRPO 135. The value of the project is estimated at $390 million. The other company tacking CRPO 136 is NMDC Energies with a project value estimate of $900 million. Lastly, the company awarded CRPO 137 is also awarded to NMDC Energies with an estimated value of $400 million. Aramco issued all the three tenders in its long-term agreement (LTA) pool of offshore works contractors in August. The contracted projects are a revision of previous contract works awarded. The contracts had been previously awarded to US company McDermott but were canceled. The reason of the cancellation of contract was tied to the contractor’s financial problems.
Aramco’s Trajectory Shows Robust Spending in Offshore Works Projects This Year
Most of the Kingdom of Saudi Arabia’s oil and gas comes from offshore hydrocarbon deposits from various fields. It is through these offshore works projects that Aramco aims to maintain and gradually increase its production in these areas. The company also wants to invest heavily in some of these mature areas. As such, the state-owned company is expected to award offshore work contracts worth more than $7bn to companies in the LTA’s offshore contractor pool. This is expected to happen by the end of this year. As part of planned spending through the of the year Aramco has already awarded the offshore works contracts worth about $5.3 billion.