McDermott International has signed a memorandum of understanding (MoU) with Saudi Aramco for a long-term land lease at the new maritime facility at Ras Al Khair in Saudi Arabia.

The facility is currently under development stage. McDermott has planned to construct this new fabrication and marine complex with latest facilities and optimised layout that will enable it to serve the expanding Middle East and Caspian markets.

McDermott president and chief executive officer David Dickson said: "We are excited about this strategic move and believe it expands and strengthens our ability to service all our growing Middle East markets and our decades-long leadership position with Saudi Aramco and in the Middle East.

"When we look at our next 50 years of business in the Middle East, we see strong benefits to moving our business operations to Saudi Arabia, including the opportunity to modernise our facilities, move closer to Saudi Aramco and other key customers in the region, as well as provide McDermott’s world-class training programmes to Saudi Arabia’s talented workforce to further enhance McDermott’s Middle East operations."

"When we look at our next 50 years of business in the Middle East, we see strong benefits to moving our business operations to Saudi Arabia."

After completion, the fabrication facility at Ras Al Khair is estimated to deliver up to 16 million manhours of capacity, an improvement from its current eight million at the Jebel Ali site.

McDermott has planned to move its business to Ras Al Khair from Jebel Ali by the mid-2020s.

The company claimed that this initiative will also support Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) programme.

The IKTVA programme plans to increase KSA-based business operations to improve domestic value creation and maximise long-term economic growth, diversification and job creation to bolster the Saudi Arabian economy.