Built to inform

Sign up for the daily newsletters

No, Thank you

Malaysia's Sapura Energy joins Saudi Aramco's LTA contractor scheme

Sapura will participate in EPCI opportunities by Saudi Aramco with its new status

Malaysia's Sapura Energy is the latest firm to join Saudi Aramco's offshore development programme [representational image].
Malaysia's Sapura Energy is the latest firm to join Saudi Aramco's offshore development programme [representational image].

A subsidiary of Malaysia’s Sapura Energy is the latest contractor to join Saudi Aramco’s Long-Term Agreement (LTA) programme, a scheme designed to support the kingdom’s state-owned oil and gas giant’s offshore projects.

In an investor statement, Sapura Fabrication Sdn Bhd and Sapura Saudi Arabia, two wholly owned subsidiaries of Sapura Energy, said they have joined “the major league of international service providers as an LTA contractor".

Under its new status, Sapura Energy said it will participate in bids for engineering, procurement, construction, and installation (EPCI) opportunities by Saudi Aramco.

READ: Saudi Aramco awards contract for offshore platforms

The deal was signed at an event in Dammam, Saudi on 26 November, and was attended by Tan Sri Shahril Shamsuddin, president and group chief executive officer at Sapura Energy.

“We are honoured to be selected by Saudi Aramco for its LTA programme. This win is a major milestone for Sapura Energy in line with our strategy to grow the business and deepen our presence in the Middle East,” the Sapura chief said, speaking on the news.

The announcement comes just days after Aramco announced it had chosen Dutch marine contractor Royal Boskalis Westminster to also join the LTA programme under a consortium with UAE-based company Lamprell, the latter which will focus on the engineering, procurement, and construction of offshore structures, such as topsides and jackets.

READ: Boskalis named contractor within Saudi Aramco's LTA programme

A key component of the LTA is Saudi Aramco’s In-Kingdom Total Value Add (Iktva) programme, which aims to drive local value creation with the LTA contractors.

With this in mind, Sapura Energy said it is taking proactive steps to fulfill its Iktva commitments by “partnering local businesses and developing local capabilities by leveraging on its in-house technical and project management expertise as well as its world-class fleet of offshore construction assets”.

Most popular

Awards

Construction industry conversations around digitisation must evolve
The Middle East construction industry’s approach to tech must evolve and focus on how can

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 753
Nov 09, 2019