A subsidiary of Malaysia’s Sapura Energy is the latest contractor to join Saudi Aramco’s Long-Term Agreement (LTA) programme, a scheme designed to support the kingdom’s state-owned oil and gas giant’s offshore projects.
In an investor statement, Sapura Fabrication Sdn Bhd and Sapura Saudi Arabia, two wholly owned subsidiaries of Sapura Energy, said they have joined “the major league of international service providers as an LTA contractor".
Under its new status, Sapura Energy said it will participate in bids for engineering, procurement, construction, and installation (EPCI) opportunities by Saudi Aramco.
The deal was signed at an event in Dammam, Saudi on 26 November, and was attended by Tan Sri Shahril Shamsuddin, president and group chief executive officer at Sapura Energy.
“We are honoured to be selected by Saudi Aramco for its LTA programme. This win is a major milestone for Sapura Energy in line with our strategy to grow the business and deepen our presence in the Middle East,” the Sapura chief said, speaking on the news.
The announcement comes just days after Aramco announced it had chosen Dutch marine contractor Royal Boskalis Westminster to also join the LTA programme under a consortium with UAE-based company Lamprell, the latter which will focus on the engineering, procurement, and construction of offshore structures, such as topsides and jackets.
A key component of the LTA is Saudi Aramco’s In-Kingdom Total Value Add (Iktva) programme, which aims to drive local value creation with the LTA contractors.
With this in mind, Sapura Energy said it is taking proactive steps to fulfill its Iktva commitments by “partnering local businesses and developing local capabilities by leveraging on its in-house technical and project management expertise as well as its world-class fleet of offshore construction assets”.