Overview of New Long-Term Agreement Deals

Saudi Aramco has awarded new long-term agreement (LTA) framework deals to over two dozen contractors, aimed at streamlining its key onshore projects in Saudi Arabia. These deals cover two distinct programmes: project management consultancy (PMC) services and engineering, procurement, and construction (EPC) for onshore brownfield work. Both programmes are expected to run for five years each, with potential extensions, providing a sustained workflow of projects over the next half-decade.

PMC LTA Awards

Eleven international companies secured PMC LTA deals. The winners include major players such as Wood, Worley, Technip Energies, Engineers India (EIL), Idom, Tecnicas Reunidas, Sinopec, Fluor, Kent, KBR, and McDermott International, the latter in a grouping with a local Saudi partner. These contractors will provide project management consultancy services across Aramco's onshore oil and gas assets.

Brownfield EPC LTA Awards

For the brownfield EPC LTA contracts, Aramco selected 18 domestic and international players. International winners include Sinopec, China Petroleum Engineering & Construction Corporation (CPECC), Technip Energies, Max Streicher, Larsen & Toubro (L&T), Archirodon, GS E&C, Kent, Kalpataru Projects, and ENPPI. Eight domestic Saudi contractors also won these deals: Abulhasan Group, New Horizon Contracting, Bin Quraya Construction, National Basics Company (NBC), Gas Arabian Services, MR Al Khathlan Company, Tecnicas Reunidas Saudi Arabia, and EPPM.

Key Details and Implications

At least four awardees won both PMC and brownfield LTA deals, resulting in a total of 25 winners for the framework agreements. A signing ceremony was recently held in Saudi Arabia with representatives from all contractors. Aramco has not yet officially confirmed the names of the winning contractors, but an announcement is expected shortly. These LTA programmes are part of Aramco's broader strategy to maintain its production profile through multiple oil and gas projects, positioning the contractors to secure several deals over the next six years. Aramco declined to comment on the awards, and some contractors, including CPECC and EPPM, could not be reached for comment.