Award for Safaniyah upgrade

By

 07 February 2013 23:59 GMT

J Ray McDermott has been selected by Saudi Aramco to carry out the phase two upgrade of the giant offshore Safaniyah oilfield following a two-horse race between the US-based company and Italy’s Saipem, writes Vahe Petrossian.

The job will be worth almost $1 billion to McDermott, with one source in Saudi Arabia putting the value closer to $900 million.

The workscope under McDermott’s existing Long Term Agreement signed in 2007, is described as a “maintain potential” job and covers a mixture of work, including platforms and pipelines. Work is to be completed by the end of 2014.

Saipem was also bidding under a more recent LTA under what amounted to a limited tender involving only the two rivals.

McDermott put in a lower bid than Saipem, said a source.

In addition,…

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