The focus is on creating new businesses and developing partnerships based on sustainability and new technologies, and includes long-term award contracts (LTAs) that involve commitments to improve cost-effectiveness, quality and safety. Saipem has signed a 12-year long-term framework agreement (LTA) with Saudi Aramco and includes engineering and ground-based construction activities. The agreement includes efficiency activities for existing facilities and is part of Saudi Aramco`s broader long-term plan to upgrade its facilities in the country`s eastern province. In accordance with Aramco`s programme for the total value of the Kingdom, the terms of the contract initially provide for a minimum obligation of 39% of local content and supplies, which will increase to 60% in six years. Saudi Aramco, the world`s largest oil exporter, has signed long-term contracts to eight companies for a series of facility modernization projects. All contracts have a term of six years, with a new option of an extension of six years. The framework agreement includes possible interventions in upstream and downstream facilities, including Wasit, Khursaniyah, Abu-Ali, Jubail, Berri, Ras Tanura, Qatif, Abqaiq, Shedgum, Uthmaniyah, Hawiyah, Haradh, Khurais, Ghawar. Aramco today announced a new contract strategy for the company`s brown oil and gas construction and facilities projects. The strategy focuses on creating new businesses and developing partnerships based on sustainability and new technologies through Aramco`s major projects, awarding long-term contracts to serious and experienced contractors to improve cost-effectiveness, quality and project safety. Earlier this year, the world`s largest oil exporter signed more than $21 billion in partnership agreements with international companies to work on its energy value chain.
Saudi Aramco also signed a $110 million joint venture with Baker Hughes in the non-metallic sector. The strategy focuses on sustainability and new technologies and provides for long-term contracts to be awarded to experienced companies to improve cost-effectiveness and project safety. According to Saudi Aramco, the scope of the agreements covers the engineering, acquisition, construction, commissioning and commissioning of each project, as well as the installation of modernized facilities in designated operating areas.