Saudi Aramco has announced collaboration with international partners to establish two offshore fabrication yards in Ras Al-Khair, according to a statement issued on Monday.
The two partners include the National Petroleum Construction Co. (NPCC) and Houston-based McDermott International. The move aims to deliver a more than 200% increase in Saudi Arabia’s offshore fabrication capacity.
Its worth noting that both NPCC and McDermott were on the top of Oil & Gas Middle East Top 25 EPC Contractors list, which was released earlier this month.
Start-up of the facilities is planned for the third quarter of 2023, with the initial combined production capacity estimated at around 70,000 metric tons.
This will increase the Kingdom’s total offshore fabrication capacity from 30,000 metric tons to 100,000 metric tons annually.
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Abdulkarim A Al Ghamdi, Aramco’s vice president of project management, said: “NPCC and McDermott are long-term partners of Aramco and the establishment of these yards is another example of our collaborations and joint efforts to deliver more advanced offshore facilities. The yards are intended to bring cutting-edge technologies and digital solutions to in-Kingdom fabrication. We also expect them to accelerate project delivery schedules and reinforce the local supply chain.”
The newly established yards are expected to fabricate and assemble offshore platforms, jackets and structures for subsea pipelines, designed to serve Saudi Arabia, gulf countries and other markets.
The establishments at Ras Al-Khair also aims to support localisation of the maritime industry, and supplement the nearby King Salman International Complex for Maritime Industries and Services.
“They are expected to harness the latest technologies, support localization efforts, improve the supply chain and contribute to the development of Saudi talent,” Ahmad Al-Sa’adi, Aramco senior vice president of technical services, said.
“In addition, they aim to contribute to economic diversification in the Kingdom,” he added.
Upon full operation, the yards are expected to create up to 7,000 direct and indirect jobs, with a target Saudisation rate of 70%
