Contracts October 2017

By Davis Thattil | Nov 01, 2017 | Source: Saudi Commerce
Ras Al Khair: Saudi Aramco signs Dredging and Reclamation Contract

Saudi Aramco recently signed its first major contract in the planned construction of King Salman International Complex for Maritime Industries and Services at Ras Al-Khair. Under the terms of the contract, a consortium comprising Saudi Archirodon Company and Huta Hegerfeld will conduct dredging and reclamation for approximately 37 million cubic meters of fill, in addition to making ground improvements and constructing new quay walls, wharves and rock revetments to protect the shipyard complex.

The scope of the contract will include the construction of 4,500 linear meters of concrete quay walls and wharves, as well as 12,000 linear meters of rock revetments and breakwaters to protect the integrity of the complex. Execution of the initial phase of the contract will be concluded by 2020, which will get ready the project’s land for subsequent construction of a dry dock and ship building and maintenance facilities.

The complex, which was inaugurated in November 2016, is a commercial maritime project which is set to make Saudi Arabia a strategic maritime logistics hub. It is expected to support the growth of the Saudi energy industry and help to meet the development and diversification objectives outlined by Saudi Vision 2030. Upon completion, the facility will provide vessel and rig building, maintenance, repair and overhaul services.

The project, upon completion, will create 80,000 job opportunities and allow Saudi Arabia to reduce its imports by $12 billion while increasing gross domestic product by $17 billion.

In May 2017 Saudi Aramco signed a shareholder agreement with Lamprell plc (“Lamprell”), the National Shipping Company of Saudi Arabia (“Bahri”), and Hyundai Heavy Industries Co. Ltd (“HHI”) to enter into a joint venture (“JV”) partnership with respect to the establishment, development and operation of the world-class maritime yard, King Salman International Complex for Maritime Industries and Services at Ras Al-Khair.

Saudi Aramco will own 50.1 percent, investing as much as $351 million.
Bahri will invest up to $139 million for a 19.9 percent stake and Hyundai up to $70 million for 10 percent. The Saudi Industrial Development Fund (SIDF) has agreed to provide a debt facility worth about $1 billion.

The integrated maritime yard will be the largest in the region in terms of production capacity and scale, providing an unprecedented mix of products and services in the region and enabling Saudi Aramco and its supply chain partners to meet their manufacturing, maintenance, repair and overhaul requirements for offshore oil and gas rigs, offshore support vessels, and commercial vessels, including Very Large Crude Carriers (VLCC). The maritime complex will comprise a separate shipyard facility for large shipbuilding, large ship repair, offshore rigs fabrication, and offshore support vessel repair. It will also include seven fully-equipped dry docks, two basins and five piers, a ship lift system, workshops, warehouses, utility services areas, as well as office buildings, living quarters, and recreational facilities for more than 10,000 workers. The new facility shall have the capacity to manufacture 4 offshore rigs, over 40 vessels including 3 VLCCs, and service over 260 maritime products annually. Major production operations are expected to commence in 2019 with the facility reaching its full production capacity by 2022. This initiative will also contribute towards localizing expertise related to the maritime industry and job creation in the Kingdom.

Saudi Aramco and KBR ink MoU

Saudi Aramco has entered into a Memorandum of Understanding (MoU) with KBR, Inc. to develop a competitive and reliable local supply chain through its In-Kingdom Total Value Add (IKTVA) program. The MoU envisages expanding and developing KBR's services for Saudi Aramco to double the percentage of locally produced energy-related goods and services to 70 percent of the total spent by 2021.

The MoU also seeks to encourage Saudi Aramco's in-Kingdom and worldwide partners across the supply chain to maintain their commitment to invest in the Kingdom and leverage the huge opportunities for growth of businesses, resources and utilize the available local skills.

"This agreement demonstrates KBR's dedication to meeting and exceeding localization objectives and supporting the Kingdom in developing human capital within engineering and project management," said Stuart Bradie, KBR President and CEO. "The Kingdom of Saudi Arabia remains a key market for KBR's global energy and hydrocarbons business and we are committed to implementing our lessons learned from successful localization initiatives in other geographies and replicating those successes in-Kingdom."

KBR has partnered with clients around the world to create successful local training programs, while employing qualified local nationals on projects. KBR continues to expand upon these efforts in the Kingdom.  For example, KBR provided engineering, design, project management, operations and maintenance services for the Sadara project in Jubail, the largest petrochemical complex ever built in a single phase. This project alone created thousands of jobs for both Saudi and U.S. engineers, project managers, and other employees.

SWCC appoints Pöyry for desalination project

The Saline Water Conversion Company (SWCC) has awarded Pöyry with the owner's engineer services assignment for the Shoaiba 4 desalination plant. Using reverse osmosis membranes, Shoaiba 4 will process up to 400000 m3 of sea water into fresh water per day.

The scope of the wok includes review of contractor's engineering and supervision of construction, erection and commissioning. "Pöyry has a long-standing relationship with SWCC going back some 30 years. 

SENDAN Signs Contract for Heat Tracing Maintenance with SADARA

SENDAN recently signed a contract with SADARA for the Heat Tracing Maintenance Services. SENDAN can offer its Saudi clients a complete Electrical Maintenance, Testing & Commissioning Solution. The contract includes installation of Heating system, provision of all necessary equipment, tools, skilled manpower and supervision.

Construction works for GAS Yanbu Nitrogen Generation Unit 

SENDAN has been awarded MPEI Construction Works for GAS Yanbu Nitrogen Generation Unit Project. A new additional Nitrogen Generation Unit (NGU) with a design production capacity of 50,000 Nm3/h GAN connected to the existing piping network and control system.  The scope of the work includes: mechanical, piping, electrical and instrumentation and installation of rotating & static equipment. Filling of lubrication, installation of steel structure, ground works, installation of anchor bolts, touch up paint, installation for equipment, perlite and catalyst filling, pipe fabrication and erection, FRP pipe erection, valve and inline instrument installation, NDT and hydro test and painting. Installation of Electrical equipment, MCC panels, UPS, BUS DUCT, SCADA equipment, MV/LV & Control cables, Jbs and local Push Button, Cable trays with fitting, light fixtures, light stanchion/poles, cathodic protection and DCS equipment.

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