Dutch offshore services provider Boskalis, and London-listed offshore rig specialist Lamprell have been selected as contractors on Saudi Aramco’s Long-Term Agreement for Offshore Facilities (LTA) program. Boskalis says the deal could generate “multiple hundreds of millions of euros revenue for Boskalis.”
Boskalis said on Monday that the LTA was part of an ambitious offshore investment program and covers engineering, procurement, construction, transportation, and installation (EPCI) contracts to support Saudi Aramco’s Offshore Maintain Potential Program, Oil & Gas Program, and other offshore expansions.
“Within the scope of the LTA, investments could exceed USD 3 billion per annum with a program duration of 6 years, with options by Saudi Aramco to extend for a further 3 plus 3 years,” said Boskalis.
Boskalis said: “Selected contractors like Boskalis have the right to bid for tenders put out by Saudi Aramco without further technical prequalification, considerably shortening the lead time through to award.”
As part of the agreement, Lamprell will focus on the engineering, procurement and construction of offshore structures, such as topsides and jackets.
Boskalis will be responsible for the transport and installation of these structures, in addition to dredging activities and specialist subsea activities, including survey as well as pipeline and cable installation.
Boskalis said the deal was an important milestone for the company “and supports the strategic vision of selective growth towards becoming a full-scope transport & installation contractor at the high-end of the offshore energy market.”
Peter Berdowski, CEO Boskalis: “As the spearhead of our strategy we have over the last number of years invested in vessels and people to broaden our offshore transport & installation capabilities. The choice for Boskalis as LTA partner supports and confirms our strategic vision. We are proud of the confidence shown by Saudi Aramco and look forward to working in partnership. In the coming year, we will focus on tendering and building up our local organization in preparation of the execution of projects for the period thereafter. It is expected that the agreement will generate multiple hundreds of millions of euros revenue for Boskalis.”
Christopher McDonald, CEO, Lamprell, said: “I am delighted to be able to announce that Lamprell has been chosen by Saudi Aramco to be part of the LTA programme. This is one of the most sought-after and selective processes in the industry and the award advances our strategic aspirations with respect to both Saudi Arabia and the EPCI sector, as well as cementing our relationship with an industry partner in Boskalis. Saudi Arabia is the cornerstone of Lamprell’s growth strategy as is evidenced by our investment in the IMI: and we are extremely grateful to have been given this opportunity to participate in the LTA.”