Saudi Aramco on Tuesday signed a land lease agreement with McDermott Arabia Company to establish a facility for large scale fabrication of offshore platforms and onshore/offshore modules located within the King Salman International Complex for Maritime Industries in Ras Al-Khair, Saudi Arabia.
“This facility will serve as a major engineering, procurement, construction and installation (EPCI) hub for not only the Kingdom, but for the [Gulf Cooperation Council] region,” said Ahmad Al Sa'adi, Saudi Aramco Senior Vice President of Technical Services.
“Having this facility with International Maritime Industries (IMI) in the King Salman International Complex for Maritime Industries offers an integrated portfolio of maritime products and services,” said Mohammad Al Assaf, Saudi Aramco Vice President of New Business Development. “The localization of these capabilities will contribute to diversifying the economy, create almost 7000 jobs, and achieve a target of 60% Saudization by 2030.”
The new 1,150,000m2 facility will be located near the Jubail Industrial City on the Kingdom’s east coast and is expected to be operational by 2022. At peak production, the facility will have a throughput capacity in excess of 60,000 metric tons per year.
McDermott will also expand its in-country engineering and procurement offices, as well as establish a new marine base in the Eastern Province to support installation of offshore platforms, subsea pipelines and cables, skids, and associated structures and assemblies.
“Expanding our fabrication capacity in Saudi Arabia demonstrates McDermott’s commitment to the Kingdom’s Vision 2030 objectives,” said David Dickson, McDermott’s President and CEO.
“We will establish a world class fabrication facility that enables us to better serve the needs of Saudi Aramco and other customers in Saudi Arabia and across the region,” added Linh Austin, McDermott Senior Vice President, Middle East and North Africa.