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Boskalis signs agreement with Saudi Aramco to partner in multi-billion investment program

26 November 2018, Papendrecht | Trade
Royal Boskalis Westminster N.V. (Boskalis) with its partners has been selected as a contractor on Saudi Aramco's Long Term Agreement for Offshore Facilities (LTA) program.

The LTA is part of an ambitious offshore investment program and covers engineering, procurement, construction, transportation and installation (EPCI) contracts to support Saudi Aramco's Offshore Maintain Potential Program, Oil & Gas Program, and other offshore expansions. Within the scope of the LTA, investments could exceed USD 3 billion per annum with a program duration of 6 years, with options by Saudi Aramco to extend for a further 3 plus 3 years. Selected contractors like Boskalis have the right to bid for tenders put out by Saudi Aramco without further technical prequalification, considerably shortening the lead time through to award.

Boskalis acquired the agreement in consortium with the United Arab Emirates-based company Lamprell. Lamprell will focus on the engineering, procurement and construction of offshore structures, such as topsides and jackets. Boskalis will be responsible for the transport and installation of these structures, in addition to dredging activities and specialist subsea activities, including survey as well as pipeline and cable installation.

This agreement is an important milestone for Boskalis and supports the strategic vision of selective growth towards becoming a full-scope transport & installation contractor at the high-end of the offshore energy market.

Peter Berdowski, CEO Boskalis: "This agreement with Saudi Aramco marks an important milestone for Boskalis. As spearhead of our strategy we have over the last number of years invested in vessels and people to broaden our offshore transport & installation capabilities. The choice for Boskalis as LTA partner supports and confirms our strategic vision. We are proud of the confidence shown by Saudi Aramco and look forward to working in partnership. In the coming year, we will focus on tendering and building up our local organization in preparation of the execution of projects for the period thereafter. It is expected that the agreement will generate multiple hundreds of millions of euros revenue for Boskalis."