Saudi energy giant Aramco has extended its Long-Term Agreement (LTA) with two of the world’s leading engineering and construction firms—McDermott and Saipem—to support both brownfield upgrades and greenfield developments across its major offshore assets.
Under the renewed framework, McDermott has secured a three-year extension, reaffirming its role as a fully integrated solutions provider in the energy sector. Saipem, meanwhile, has signed a contract renewal that extends its participation in the LTA until the end of 2027.
McDermott stated that the agreement extension enhances the current terms and lengthens their collaboration period, enabling further alignment with Saudi Arabia’s long-term energy goals.
The company emphasized that the LTA renewal aligns with Saudi Vision 2030 and will strengthen its contribution to the in-Kingdom Total Value Add (IKTVA) programme and other national content initiatives.
“This extension reflects our consistent performance and the successful delivery of Aramco projects over the past decade, including under the original LTA and various lump-sum turnkey contracts,” said Mike Sutherland, Senior Vice President for Offshore Middle East at McDermott. “Aramco’s ongoing investments in offshore field development highlight their commitment to energy security.”
McDermott also revealed plans to complete its Safira fabrication yard, enhancing its ability to deliver large-scale offshore infrastructure and further expanding its in-country engineering, procurement, and project management capabilities.
Sutherland added that McDermott remains focused on hiring and developing Saudi talent, ensuring sustainable workforce growth across all organizational levels.
The Safira yard will be equipped to fabricate offshore platforms, jackets, and structures for subsea pipelines critical to Aramco’s offshore development plans.
Meanwhile, Saipem confirmed that its inclusion in Aramco’s exclusive list of eligible LTA contractors has been reaffirmed. This list includes companies authorized to bid for Contract Release Purchase Orders (CRPOs), which cover both new projects and maintenance initiatives aimed at sustaining offshore production.
Saipem noted that these LTA contracts will be executed by a consortium led by Snamprogetti Saudi Arabia—its local subsidiary—and STAR (Saipem Taqa Al-Rushaid Fabricators Co.), which has operated a fabrication yard in Saudi Arabia since 2008. This partnership underscores Saipem’s commitment to expanding local operations and maximizing in-country value.
The company also highlighted its longstanding relationship with Aramco, built on decades of collaboration in onshore, offshore, and drilling projects.