Saudi Aramco, Mcdermott Plan Ras Al-Khair Facility

Fabrication Facility for King Salman International Complex for Maritime Industries

Engineering services firm McDermott has signed a ‘major’ lease agreement with oil major Saudi Aramco for the development of a fabrication facility for breakbulk offshore platform construction and handling.
The proposed facility will be located within the King Salman International Complex for Maritime Industries in Ras Al-Khair, Saudi Arabia, and will be used for large-scale fabrication of offshore platforms as well as onshore and offshore modules.
“We will establish a world-class fabrication facility that enables us to better serve the needs of Saudi Aramco and other customers in Saudi Arabia and across the region,” said Linh Austin, McDermott senior vice president, Middle East and North Africa.

Key Breakbulk Hub
The new site is expected to act as a key breakbulk hub for the country’s growing offshore projects portfolio and McDermott has already announced plans to expand its in-country engineering and procurement offices, as well as establish a new marine base in the Eastern Province to support growth in installation of offshore platforms, subsea pipelines and cables, skids, and associated structures and assemblies.
Work will be carried out by McDermott Arabia in partnership with integrated shipyard International Maritime Industries, a joint venture between Saudi Aramco, Lamprell, Bahri and Hyundai Heavy Industries.

“Having this facility with International Maritime Industries in the King Salman International Complex for Maritime Industries offers an integrated portfolio of maritime products and services” Mohammad Al Assaf, Saudi Aramco vice president of new business development.

World-class Standards

Once complete the new fabrication facility will cover about 1.15 million square meters. Located near Jubail Industrial City on the Kingdom’s east coast it will utilize “cutting edge technologies” to ensure world class standards in safety, quality and efficiency.

“Expanding our fabrication capacity in Saudi Arabia demonstrates McDermott’s commitment to the Kingdom’s Vision 2030 objectives,” said David Dickson, McDermott’s president and CEO.

The construction process is set to begin imminently and will include significant localization of skills with the crearion of almost 7,000 jobs, and a target of 60 percent Saudization by 2030.

Marjan Acts as Project Catalyst
As one of the largest state-owned oil firms in the world, Saudi Aramco has doubled down on investment in the country’s petrochemical sector in the last year following its failed plans to launch an IPO.
Under the Kingdom’s 2030 Vision program the company has also announced plans for a three-phase energy and indsutrialization hub at Salman Energy Par. The proposed hub will develop in parallel with construction at the giant Marjan offshore field, acting as a locus for breakbulk activity and manufacturing.
Photo: Ras Al-Khair. Credit: Wikimedia