Aramco awards engineering contract
March 16 - 2015
By Kevin Baxter
Three companies selected for five-year Maintain Potential Programme scheme
- Offshore contract of the largest in the region.
- First time Aramco has chosen more than one company for the MPP.
- Three signatories gives Aramco much more flexibility
Saudi Aramco has awarded three international engineering consultancies the contract for its Maintain Potential Programme (MPP), the engineering services contract that focuses on offshore operations.
The three companies are:
- KBR (US)
- Mustang Engineering (US)
- WorleyParsons (Australia)
MEED reported in February that the firms were the frontrunners for the long-term deal and this has now been made official. All three companies are signatories of Aramco’s General Engineering Plus (GES-Plus)
The MPP has traditionally been one of the largest engineering services contracts to be awarded in the kingdom and the decision to award three companies confirms the new scope would be even more expansive and include more companies.
“The main factor for having three companies is that Aramco now has a flexible engineering force that can focus on several key issues at any one time,” says a source familiar with the MPP. “This means that the day-to-day maintenance can be done while planning for projects.”
Aramco is expected to make an award in April and then give the successful bidders 90 days to mobilize workers. The deal will run for an initial five years with the option of a two-year extension.
Historically the MPP has run on for even longer. WorleyParsons is the current holder of the MPP contract and has employed 350 dedicated staff on the scheme since 2003. It was awarded a two-year extension in 2013 that will expire in the summer.
Aramco has extensive offshore operations on its Gulf coast including Safaniya, the world’s largest offshore oil field, and several large non-associated gas fields. Many of the Gulf fields are mature and likely to require extensive rehabilitation over the next decade to maintain production. Hundreds of new wells need to be drilled every year to maintain operations in shallow-water fields.
Saudi Aramco was not available for comment when contacted by MEED.