American multinational firm McDermott International has been awarded two contracts with a combined worth of more than $4.5 billion by oil giant Saudi Aramco for the Marjan Increment Development Project, according to several media reports.
The Marjan Increment Development Project is anticipated to increase production from 500,000 to 800,000 barrels per day. It is located in the Arabian Gulf, off the east coast of Saudi Arabia.
The first contract was awarded for package 1 for over $3billion. Till date it is the single largest engineering, procurement, construction and installation (EPCI) project from Aramco. According to media reports, package 1 includes project management and engineering and marine services provided by McDermott. The teams will be located in McDermott’s Asia-Pacific headquarters in Kuala Lumpur.
Linh Austin, senior vice-president, Middle East and North Africa, told reporters, “This award signifies Aramco’s confidence in McDermott’s project management expertise and ability to meet the interface, logistics and coordination challenges that an EPCI project of this vast scale represents.”
The second EPCI contract awarded for package 4 is valued at $1.5 billion. McDermott under the terms of this contract will work for offshore gas facilities and pipelines, the media reports said. Package 4 is the second largest EPCI offshore contract from Aramco in the Marjan Increment Development Project.
The project management for package 4 will be based in Dubai, with McDermott’s engineering teams in Al Khobar, and Chennai in India.
Senior Vice President for McDermott’s Mena operation, Linh Austin told reporters, “The award of Marjan Package 4, in addition to Marjan Package 1, is evidence of Aramco’s confidence in McDermott’s ability to deliver on a project of this scale.”