Contracts Support Local Engineering
Posted: 02 March 2005
Saudi Aramco recently awarded project management services contracts to two consortia of businesses for the creation of two Kingdom-based, private-sector contracting companies to support Saudi Aramco in the performance of more complex in-Kingdom design work and to eventually serve the Gulf Region.
The contracts allow the development of these two local engineering offices' capabilities for providing front-end engineering for complex hydrocarbon facilities normally executed outside the Kingdom. These offices are envisioned to become internationally recognized engineering firms and expand beyond the workload of Saudi Aramco.
The contracts also call for extensive on-the-job training programs for Saudi employees to transfer this specialized engineering and project management knowledge. They call for an aggressive Saudization program that will result in a contractor workforce 65 percent Saudi by the end of the program. Such systematic and continuous development will provide the proper foundation for technology transfer.
The first contract was awarded to a well-established Saudi engineering consulting company, Saud Consult, in consortium with the U.S.-based Jacobs Group and Canadian-based SNC Lavalin.
The second contract was awarded to the Zuhair Fayez Partnership Consultants, another well-established Saudi company, in association with the joint venture of Australia-based Clough Group and U.S.-based S&B.
Both consortia will be based in al-Khobar and act as project management consultants and perform predominantly front-end engineering and design work for hydrocarbon extraction and processing facilities. Contract terms call for a five-year agreement with two-year extension options.
Ali A. Al-Ajmi, vice president of Project Management, congratulated the successful bidders and highlighted the importance of the creation of these two local engineering entities from a strategic perspective to support the expanding oil, gas and petrochemical industries in the Gulf Region.
Al-Ajmi said the challenges ahead are many but that he is confident these goals can be reached based on the dedication and commitment displayed by the involved parties.
Mohammed A. Al-Juwair, general manager of Southern Area Projects, predicted that in the long term these companies will advance beyond preliminary engineering to perform sophisticated detailed engineering and ultimately evolve into international engineer, procure, construct (EPC) contractors.
Posted by Editor Pipeline Magazine
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