4/10/2018 Foreign firms eye more Aramco engineering deals
Myanmar Energy & Environment Brexit North Korea Charged: The Future of Autos Future of Money
INDUSTRIALS
APRIL 14, 2010 / 12:07 PM / 8 YEARS AGO
Foreign firms eye more Aramco engineering deals
Reuters Staff
* Global firms look to JVs with local firms for new deals
* Contracts aim to give local firms role in big projects
* 10 groups prequalified new Aramco engineering contracts
By Reem Shamseddine
KHOBAR, Saudi Arabia, April 14 (Reuters) - Foreign engineering firms hope new partnerships
with Saudi companies will increase their chances of winning deals from state oil giant Saudi
Aramco, industry sources said on Tuesday.
The partnerships should give domestic Saudi firms more access to Aramco’s larger projects,
and increase the role of foreign firms in small and medium projects.
Detailed preliminary engineering work for Aramco’s mega projects has so far been conducted
by international firms outside of the world’s top oil exporter.
https://www.reuters.com/article/saudi-aramco-engineering/foreign-firms-eye-more-aramco-engineering-deals-idUSLDE62T0M020100414 1/10
4/10/2018 Foreign firms eye more Aramco engineering deals
“The front-end engineering and design (FEED) has never been done in-kingdom before. With
the infusion of the technical capabilities of international companies, this will happen,” a
source from an international company said. “What used to be done outside the kingdom will
be done here,” he added.
New contracts, called long-term new general engineering services plus (GES+), aim to allow
local companies to enter into joint ventures with international firms and provide detailed
engineering, project management and technology services on a larger scale.
In 2001, Aramco signed several deals for general engineering services (GES) to encourage
local firms to carry out basic engineering work in the kingdom and help create more jobs for
Saudi nationals.
MEGAPROJECTS
Eventually, local engineering firms in partnerships could develop preliminary design and
engineering for Aramco’s megaprojects, which involve armies of tens of thousands of
labourers.
Foreign firms in turn would tap into small and medium projects by offering along with their
local partners full engineering services. Local companies at present undertake the work on
small to medium projects.
“International companies are actually entering into a segment of the market which was
precluded until yesterday,” another source from a foreign company said.
Technip TECF.PA, Foster Wheeler FWLT.O, WorleyParsons (WOR.AX), Jacobs Engineering
Group Inc (JEC.N), KBR Inc (KBR.N), and SNC-Lavalin Group (SNC.TO) are among 10
consortiums that submitted prequalification documents to compete for GES+ contracts with
local companies, a source from an international company said. The deadline for submission
was in January.
https://www.reuters.com/article/saudi-aramco-engineering/foreign-firms-eye-more-aramco-engineering-deals-idUSLDE62T0M020100414 2/10
4/10/2018 Foreign firms eye more Aramco engineering deals
“We have a strategy to enter into these small to medium size projects because we want to
increase our proximity in the local strength to the client ... If you want to be present in the
market you must be able to cover all segments,” the source said.
Aramco plans to invite seven shortlised firms to bid for the GES+ contracts in the second half
of April. It will then select five companies and award deals in July, the source said.
Aramco would make slight savings on the costs of outsourcing the engineering work, he said.
The conservative Gulf Arab state has a range of initiatives to improve Saudi participation in the
private sector and lower its dependence on expatriate workers. It needs to create jobs for a
rapidly growing young population.
WorleyParsons Ltd 14.27
WOR.AX AUSTRALIA STOCK EXCHANGE +0.36 (+2.59%)
WOR.AX JEC.N KBR.N SNC.TO FLR.N
https://www.reuters.com/article/saudi-aramco-engineering/foreign-firms-eye-more-aramco-engineering-deals-idUSLDE62T0M020100414 3/10
4/10/2018 Foreign firms eye more Aramco engineering deals
LIST OF CONSORTIUMS:
-Technip, Saudi Consulting Services
-Jacobs-Zamel and Turbag Consulting Engineers (ZATE)
-WorleyParsons-Petrocon-
-Foster Wheeler-Sofcon-Saudi Consolidated Engineering Co (SCEC)
-Mustang Engineering- PI-Consult-Al-Hejailan Consultants-DAR AL-RIYADH
-KBR-Abdulhadi & Al Moaibed Consulting & Design Engineers (AMCDE)
-SNC-Lavalin-Zuhair Fayez Partnership Consultants
-Bechtel
-Fluor Corp (FLR.N)
-Sinopec-Aker Kvaerner-Arabian Consulting Engineering Centre (ACEC)
Editing by Simon Webb and Sue Thomas
Our Standards: The Thomson Reuters Trust Principles.
WORLD NEWS
APRIL 9, 2018 / 5:20 AM / UPDATED 17 MINUTES AGO
Trump vows quick action in response to suspected chemical
attack in Syria
https://www.reuters.com/article/saudi-aramco-engineering/foreign-firms-eye-more-aramco-engineering-deals-idUSLDE62T0M020100414 4/10
