Aramco has announced a new long-term contracting strategy for its oil and gas brownfield and plant upgrade projects, aimed at improving cost efficiency, quality, and safety while promoting sustainability and new technologies. Under this strategy, Aramco will form long-term partnerships with reputable and experienced contractors through its major projects.

Following a competitive evaluation process, eight companies were selected, including GS Construction Arabia Co. Ltd., to execute the work. The Long-Term Agreements (LTAs) cover engineering, procurement, construction, start-up, and pre-commissioning activities, as well as the installation of upgraded facilities. Each contract has a six-year term with an option for a further six-year extension.

The strategy strongly supports Saudization and local content development through Aramco’s In-Kingdom Total Value Add (IKTVA) program. Contractors are required to achieve a minimum of 39% local content initially, increasing to 60% within six years.

Aramco News Link: https://www.aramco.com/en/news-media/news/2020/aramco-awards-major-agreements-to-eight-companies