McDermott Collaborates with Aramco for Long-Term Project Management Services

McDermott and Aramco Join Forces for Project Management Consultancy

In a significant move within the energy sector, Aramco has officially chosen McDermott Nederland B.V. as one of the preferred contractors in a major Project Management Consultancy (PMC) Long-Term Agreement (LTA). This initiative aims to bolster the management and execution of extensive energy, downstream, petrochemical, and low carbon projects throughout Saudi Arabia.

The agreement, a multi-year arrangement, sees McDermott positioned as a key player in Aramco's strategic investment programs. The firm is set to utilize its global expertise and resources to deliver engineering, front-end development (including pre-FEED and FEED), and consultancy services related to project management. This collaboration is expected to propel both companies towards their shared goals of delivering world-class projects while adhering to local and national development strategies.

A key aspect of this partnership is the alliance between McDermott and Solutions Leaders Fayez Engineering (SLFE), a prominent Saudi engineering firm recognized as an Aramco-approved General Engineering Services contractor. This partnership combines McDermott's extensive experience in executing capital-intensive projects on a global scale with SLFE's established local foothold and capabilities in executing projects within the Kingdom.

Michael McKelvy, the CEO of McDermott, stated, “Our commitment goes beyond business; just as the United States and Saudi Arabia bolster long-term ties, we’re dedicated to localization, knowledge transfer, and sustainable capacity building in the region.” He further emphasized that this agreement reflects Aramco's trust in McDermott's proven capabilities to deliver complex projects effectively.

As part of the agreement, the McDermott-SLFE partnership will employ an integrated delivery model that leverages both out-of-Kingdom resources and in-Kingdom execution capabilities. This dual approach facilitates efficient project delivery while aligning with Aramco’s localization objectives and the In-Kingdom Total Value Add (IKTVA) initiative. SLFE will focus on providing client support and engineering services locally, while McDermott will oversee the overarching execution planning, governance, and technical leadership through its established global engineering frameworks.

Ashraf Alkhaznadar, President and CEO of SLFE, expressed pride in collaborating with McDermott on this strategic project, noting the complementary strengths that each party brings to the table, which will bolster Aramco's long-term vision and enhance the national engineering workforce.

McDermott’s longstanding relationship with Aramco, characterized by a history of successful project executions in the energy sector, positions the company well to support Saudi Arabia's long-term development goals and energy transition initiatives. As the energy landscape evolves, McDermott remains committed to fostering growth and innovation in partnership with Aramco and integrating local expertise into their operations.

In summary, this long-term partnership marks a pivotal moment in the energy sector, reinforcing both companies' commitments to sustainability, technological advancement, and enhancing local capabilities. As they embark on this journey together, the synergy between McDermott and Aramco holds great potential for advancements in large-scale energy projects within Saudi Arabia.

For more information on McDermott, a global leader in engineering and construction solutions for the energy industry, please visit their official website at www.mcdermott.com.