LTA contractors bid on two tenders for offshore field work

Five offshore contractors that are a part of Saudi Aramco’s prestigious long-term agreement (LTA) arrangement have submitted bids for two key tenders involving 19 platform jackets for the country’s several offshore oil and gas fields, writes Nishant Ugal.

Sources told Upstream that technical and commercial offers for the two projects were submitted to Aramco this month, with contract award due within weeks.

The first package involves the engineering, procurement, construction and installation of 10 jackets, while the second package involves nine sub-structures. The jackets will be installed across a number of the country’s fields, including Berri, Zuluf, Safaniyah, Marjan and Hasbah, in relatively shallow water depths, sources said.

One suggested the two contracts could be worth over $500 million and that the bid battles are likely to be tightly contested.

The quintet believed to have submitted bids to Aramco include US-based contractors McDermott and Dynamic Industries, Italy’s Saipem, a partnership of India’s Larsen & Toubro with Singapore’s Emas, and Abu Dhabi-based National Petroleum Construction Company. China’s Offshore Oil Engineering Corporation (COOEC) is said to be associated with Dynamic Industries for transportation and installation work.

Aramco awarded offshore projects worth more than $4 billion last year, despite the wider industry downturn.

The Saudi state-owned giant is also keen on expanding the list of its preferred LTA contractors and is believed to be speaking to several players.

However, another source claimed there is no clarity yet on whether Aramco will include new contractors in the LTA list this year.