Abu Dhabi's NPCC wins Aramco contract
The contract is for 17 jackets, the steel frames supporting offshore rigs, for the Berri and Marjan offshore oilfields in the Gulf, north of the port town of Jubail
Abu Dhabi’s National Petroleum Construction Company (NPCC) has won an offshore contract under the long-term agreement it signed with Saudi Aramco last year, helping to secure jobs for its Mussaffah yard.
The contract is for 17 jackets – the steel frames supporting offshore rigs – for the Berri and Marjan offshore oilfields in the Gulf, north of the port town of Jubail.
The tender win comes three months after NPCC signed its Aramco deal, putting it in a closed group of five companies that can bid for Aramco offshore engineering contracts in the value range of between $100mn and $300mn. Subsidiaries of McDermott and Dynamic Energy of the US, Italy’s Saipem and an Indian consortium led by Larsen & Toubro are also in the mix.
The initial contract will take about 11 months to complete, said Aqeel Madhi, the chief executive of NPCC, who added that the Saudi deal, which runs initially for six years, could bring significant additional business.
"Such a strategic agreement with a global major, Saudi Aramco, is an endorsement of NPCC’s state-of-the-art expertise," Madhi said.
NPCC is a joint venture between Abu Dhabi government conglomerate Senaat, which owns 70%, and the rest is held by Consolidated Contractors International Company, the Athens-based firm owned by the Lebanese Khoury family.
"Frequently, in the past couple of months they have sent us packages to bid on," he said. "We are now also pricing for topsides", which are the big decks on the offshore platforms.
NPCC employs about 14,000 people, mostly in its 1.4sqkm yard in Abu Dhabi’s Mussaffah industrial area.
Madhi said the company "has had to trim here and there" during the oil industry downturn of the past couple of years, but was able to keep work and employment rates up because of huge contracts won for Abu Dhabi’s offshore fields as well as other projects.
"But we need to win more contracts for 2018" to keep the backlog of projects at a healthy level, Madhi said.
NPCC has worked with Aramco on large and smaller projects since 1985. Under new contract terms the LTA group has also committed to meet Saudi’s "in kingdom total value added" (IKTVA) goals, which include local procurement and jobs targets.
Neither company said what the value of the jackets contract was, although the trade press reported it had a value of $225mn.