Saudi Aramco plans to expand its pool of contractors, as it seeks more engineering firms that can provide hook-up and commissioning services for its offshore projects and infrastructure, MEED reported on Thursday.
The Saudi giant is looking for some engineering firms to be added due to the high volume of offshore work awarded to the firm recently, an industry source told the news agency.
Aramco has been operating for years with a small number of contractors that had the exclusive right to bid for tenders relating to hook-up and commissioning services, by virtue of long-term agreements (LTAs).
The companies that had LTAs with Aramco included Al-Shoaibi Group and Zamil Offshore. These local firms are expected to remain in the pool, sources said, adding that the LTAs with the firms will expire in August.
Aramco on March 21 invited new offshore companies to bid for being part of the group, and firms are now preparing to make their bids.
Describing the work of this group, the source added that these firms are handling small and specific services of contracts much below $100 million in value.
The source noted that firms that have presence in Saudi Arabia might look to bid, but “it is not worth it for smaller players or companies of no presence.”
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