McDermott Signs Aramco’s Long-Term Framework Agreement

Key Highlights:

·         3-Year LTA Extension: McDermott secures a three-year extension of its Long-Term Agreement (LTA) Framework with Aramco.

·         Support for Offshore Projects: The extension covers both brownfield and greenfield developments across Aramco’s major offshore assets.

·         Proven Track Record: The renewal reflects McDermott’s strong performance over the past decade on Aramco projects.

·         Alignment with Vision 2030: Strengthens McDermott’s role in supporting Saudi Vision 2030 and localization goals.

·         IKTVA Commitment: Reinforces support for the In-Kingdom Total Value Add (IKTVA) program and local content initiatives.

·         SAFIRA Yard Development: McDermott to complete its SAFIRA fabrication yard to boost in-Kingdom project delivery capacity.

·         Local Workforce Development: Focus on recruiting and training Saudi nationals at all levels within the organization.

·         Infrastructure Readiness: SAFIRA will enable fabrication of offshore platforms, jackets, and subsea pipeline structures.

·         Energy Security Focus: Aramco’s ongoing investments highlight a commitment to energy reliability and offshore growth.

 

Summary:

McDermott, a global leader in engineering and construction, has secured a significant three-year extension of its Long-Term Agreement (LTA) Framework with Aramco, the Saudi energy giant. This renewed partnership will allow McDermott to continue supporting both brownfield upgrades and greenfield developments on some of Saudi Arabia’s most vital offshore energy assets.

According to Mike Sutherland, McDermott’s Senior Vice President for Offshore Middle East, the extension highlights the company’s reliability and excellence in project delivery over the past decade under both the initial LTA and various turnkey contracts. He emphasized that Aramco’s continued investment in offshore infrastructure underscores its dedication to global energy reliability.

The move strongly aligns with Saudi Vision 2030, particularly the drive toward localization and sustainable economic development. Through this extension, McDermott reaffirms its commitment to the In-Kingdom Total Value Add (IKTVA) program, aiming to boost local content and capabilities.

One of McDermott's key initiatives under this agreement is the completion of its SAFIRA fabrication yard in Saudi Arabia. Once operational, SAFIRA will be a cornerstone for the company’s regional operations, enabling the fabrication and assembly of offshore platforms, jackets, and pipeline structures necessary for upcoming Aramco projects.

Furthermore, McDermott will expand its Saudi-based project management, engineering, and procurement teams. A major focus will be on recruiting and training Saudi nationals, ensuring that local talent is fully integrated and empowered to lead future energy developments.

This extension not only reinforces McDermott’s role in Saudi Arabia’s offshore energy expansion but also reflects its long-term strategic vision of being a trusted partner in the Kingdom’s journey toward a diversified, resilient energy sector.