Saudi Aramco and McDermott ink MoU for land lease
McDermott plans to construct a new fabrication and marine complex in Ras Al Khair, Saudi Arabia
McDermott International has signed a memorandum of understanding (MoU) with Saudi Aramco for a long-term land lease at the new maritime facility at Ras Al Khair, Saudi Arabia.
The US-based engineering and construction company has plans to construct offshore production facilities in Ras Al Khair, which is currently being developed by Saudi Aramco.
With a long-term phased approach, McDermott intends to build a new fabrication and marine complex, which is expected to use high-tech facilities, increased automation, and an optimised layout to increase its abilities to service its Middle East and Caspian markets.
McDermott expects to grow its capabilities and capacity in the region to serve its customers in offshore and subsea markets throughout the region.
The future fabrication facility in Ras Al Khair is expected to provide up to 16 million man-hours of capacity, up from the eight-million man-hours provided by McDermott’s existing Jebel Ali facilities. The company expects to enact a gradual transition from its operations in Jebel Ali to Ras Al Khair by the mid-2020s.
David Dickson, McDermott’s president and chief executive office, said: “We are excited about this strategic move, and believe it expands and strengthens our ability to service all our growing Middle East markets and our decades-long leadership position with Saudi Aramco and in the Middle East.
“When we look at our next 50 years of business in the Middle East, we see strong benefits to moving our business operations to Saudi Arabia, including the opportunity to modernise our facilities, move closer to Saudi Aramco and other key customers in the region, as well as provide training programmes to Saudi Arabia’s workforce to further enhance McDermott’s Middle East operations.”
In January, the Saudi oil giant awarded McDermott a contract to construct four jackets and three gas observation platforms offshore in the country.