Fossil Energy – LTA Extension
McDermott has been awarded a three-year extension of its Long-Term Agreement (LTA) Framework by Aramco to support brownfield and greenfield developments on some of Saudi Arabia’s largest offshore assets.
The extension optimizes the current agreement and extends the duration of the agreement.
“The extension of this prestigious agreement is testament to our application of project delivery best practices through the past decade on the initial LTA contract and other lump-sum turnkey contracts we hold with Aramco,” said Mike Sutherland, Senior Vice President, Offshore Middle East. “Aramco’s continued investment in the development and maintenance of the Saudi offshore fields demonstrates their efforts to provide energy reliability.”
In line with Saudi Vision 2030, McDermott has ambitious long-term growth plans in Saudi Arabia. Extension of the LTA will bolster support of the in-Kingdom Total Value Add (IKTVA) program and other local content commitments.
As part of its commitment to IKTVA, McDermott plans to complete construction of its SAFIRA fabrication yard to enhance project delivery capability and support its growing Saudi-based project management, engineering, and procurement presence.
McDermott will continue its commitment to the recruitment and development of talented Saudi nationals at all levels. SAFIRA will have the capability to fabricate and assemble the offshore platforms, jackets and structures for subsea pipelines required to support Aramco’s planned offshore expansions.
