McDermott, through its subsidiary McDermott Nederland, has been chosen by Aramco as one of 11 contractors for a long-term agreement (LTA) in project management consultancy (PMC).
The agreement will help execute major energy, downstream, petrochemical and low-carbon projects throughout Saudi Arabia.
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The financial terms of the LTA were not disclosed.
The deal positions McDermott to provide engineering and project management services as part of Aramco’s strategic investment programmes.
As part of the agreement, McDermott will utilise its global delivery framework and technical expertise to provide engineering, front-end development including pre-front-end engineering design (pre-FEED) and FEED, and project management consultancy services.
McDermott CEO and board chair Michael McKelvy said: “Just as the US and the Kingdom share a commitment to long-term collaboration, we share a commitment with SLFE [Solutions Leaders Fayez Engineering] to localisation, knowledge transfer and sustainable capacity building within the Kingdom.”
The arrangement includes a partnership with SLFE, an Aramco-approved general engineering services + contractor based in Saudi Arabia.
McDermott plans to combine its international experience with SLFE’s local capabilities to execute projects both inside and outside Saudi Arabia using an integrated model.
SLFE is expected to focus on engineering and client support within Saudi Arabia, while McDermott will oversee execution planning, governance and technical leadership via its global engineering centres.
SLFE president and CEO Ashraf Alkhaznadar said: “We are proud to partner with McDermott on this strategic agreement with Aramco.
“Together, we bring complementary strengths that support Aramco’s long‑term vision while continuing to develop national engineering capability.”
The collaboration is designed to help meet Aramco’s localisation initiatives and In-Kingdom Total Value Add objectives, which promote value creation and skills development within Saudi Arabia.
This appointment extends McDermott’s ongoing relationship with Aramco.
The company has previously supported engineering and energy infrastructure projects in the Middle East.
The current award is seen by McDermott as a means of furthering its involvement in Saudi Arabia’s development and energy transition plans.
Earlier this year, McDermott secured a decommissioning definition engineering contract from QatarEnergy for Qatar’s first offshore decommissioning project.
