RIYADH: McDermott International (MDR) has signed a memorandum of understanding (MoU) with Saudi Aramco for a long-term land lease to build a new fabrication and marine complex at the King Salman International Complex for Maritime Industries and Services in Ras Al Khair, currently being developed by Aramco. With a long-term phased approach, McDermott plans to construct the new complex, which is expected to use state-of-the-art facilities, increased automation and an optimised layout to increase McDermott’s abilities to service its growing Middle East and Caspian markets. The future fabrication facility at Ras Al Khair is expected to provide up to 16-million manhours of capacity, up from 8-million manhours at McDermott’s current Jebel Ali facilities, with a gradual transition from McDermott’s operations in Jebel Ali expected by the mid-2020s, an MDR statement said.
The Ras Al Khair project is part of Saudi Aramco’s plan to expand its local supply chain, which will improve the company’s agility while driving additional economic and human capital development, as well as new employment opportunities in Saudi Arabia in support of the goals of “Vision 2030”, said an Aramco statement. MDR is a leading provider of engineering, procurement, construction and installation (EPCI) services for offshore developments worldwide, with over 55 years of experience in the region and in working for Saudi Aramco. The selection of MDR was the result of a rigorous evaluation process which followed extensive negotiations with several world-class players in the offshore EPCI services field, said the statement. The project aims to create a world-class provider of offshore EPCI services throughout the Middle East and regional markets. It will build on the existing relationship between Saudi Aramco and MDR to localise this part of the supply chain, which would improve efficiency while increasing local content, export of energy goods and services, and further development of the kingdom’s economy, it said.
