Page 13 - MEOG Week 09 2021

MEOG TENDERS MEOG

Lamprell wins Aramco deal for Marjan

SAUDI ARABIA LONDON-LISTED fabrication specialist McDermott, both of the US, L&T with Subsea
Lamprell last week announced that it had been 7, Abu Dhabi state-backed National Petroleum
awarded an engineering, procurement, con- Construction Co. (NNPC) and Saipem, while
struction and installation (EPCI) contract from China Offshore Oil Engineering Co. (COOEC),
Saudi Aramco covering infrastructure for the UAE, Malaysia’s Sapura Energy, and UK-based
offshore Marjan oilfield. TechnipFMC with Malaysia Marine & Heavy
Making the announcement on the London Engineering were all included at the same time
Stock Exchange (LSE), Lamprell said that the as Lamprell.
contract, which is estimated to be around $50- Late last year, Lamprell was awarded a smaller
100mn, “consists of two offshore production contract for engineering design services by
deck modules and associated pipeline and sub- International Maritime Industries (IMI), Aram-
sea cables” for Marjan. While a ‘major’ contract co’s joint venture maritime yard at Ras Al Khair
for Lamprell, its award illustrates Aramco’s focus in which the Saudi firm is partnered by its ship-
on brownfield work following the postponement ping division Bahri as well as Lamprell and South
of bidding for work on major greenfield and Korea’s Hyundai Heavy Industries (HHI). IMI is
expansion work at Marjan as well as Berri and part of the wider King Salman Global Maritime
Jafurah, which are likely to remain on hold until Industries Complex.
at least the late Q2 this year. Despite the delays,
Aramco is understood to be keen to make a push Loan elongation
to increase its maximum sustainable oil produc- Reports emerged this week that Aramco has
tion capacity from 12mn barrels per day to 15mn asked for a one-year extension to a 12-month,
bpd by 2025. $10bn loan it agreed in May last year.
Lamprell’s CEO, Christopher McDonald, Speaking to Loan Pricing Corp., two sources
said: “Our team has been working closely with speaking on condition of anonymity said that the
Saudi Aramco over the past few months and we company had approached the 10 banks, noting
look forward to strengthening our partnership that the lenders are likely to agree to the exten-
through this project. Marjan is a strategic asset of sion in order to keep Aramco happy and poten-
global significance and we are honoured to play a tially win work in the future.
role in its development.” Meanwhile, a source confirmed the report
The award is the first Lamprell has received to Reuters, adding “It’s Aramco. Why not?”
since it was admitted to Aramco’s highly attrac- when asked whether the banks would agree to
tive long-term agreement (LTA) programme in the request. The loan is priced at 50 basis points
December 2019 in collaboration with Boskalis of above LIBOR and the source suggested to Reu-
the Netherlands. ters that Aramco could try to push this down to
The original group of Aramco’s LTA contrac- 10-15bps given the rising oil price and improved
tors was made up of Dynamic Industries and market conditions.™

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