The Abu Dhabi oil and gas services contractor National Petroleum Construction Company (NPCC) will increase its role in Saudi Arabia’s oil and gas sector, as the kingdom places a greater emphasis on offshore operations, the companies announced yesterday.
NPCC will supply four offshore platforms and associated equipment for Saudi Aramco’s Al Safaniya, Zuluf and Berri oilfields. This is the third deal under the six-year agreement signed last year. In January, NPCC announced it would supply 17 offshore jackets to two fields. The values of the three contracts were not disclosed.
The latest contracts will take NPCC 23 months to complete, according to its chief executive, Aqeel Madhi.
Saudi Aramco began signing long-term agreements with various contractors in 2015, in line with its plans for offshore expansion in both green and brownfield operations.
The contractors will be responsible for delivering a number of offshore hydrocarbon-producing platforms and facilities as part of the In Kingdom Total Value Add programme, which will drive domestic market creation.
Ahmed Al Saadi, the senior vice president of Aramco’s technical services, said last year that these contracts were needed for the “successful execution of the complex and extensive offshore projects to be completed in the Arabian Gulf, all within an aggressive schedule”.
Mr Madhi said NPCC would continue to pursue a strategy of increasing its share of the international oil and gas contracting market by exploring new growth opportunities.
The company is currently operating in the Arabian Gulf and Asia, but it has plans to expand into Africa and the Caspian region.
Other Abu Dhabi heavyweights are also looking for closer ties with their neighbour.
Last month, the Abu Dhabi National Oil Company (Adnoc) as well as the emirate’s clean energy firm, Masdar, signed separate agreements with Aramco to strengthen ties in the energy sector.
Adnoc and Aramco will focus on developing new technologies to better manage the low-oil price environment, while a tie-up with Masdar will help broaden the companies’ renewables reach as well as expand carbon capture projects.
lgraves@thenational.ae
Follow The National's Business section on Twitter
