Page 12 - MEOG Week 17 2021

MEOG PROJECTS & COMPANIES MEOG

L&T wins contract for SPARK work

SAUDI ARABA INDIAN engineering firm L&T last week exclusive prequalification for the majority of off-
announced that it had been awarded a contract shore engineering, procurement, construction
to design and build one of the world’s largest oil and installation (EPCI) work on the company’s
and gas supply bases at Saudi Arabia’s King Sal- “general bid slate”.
man Energy Park (SPARK). The latter pool comprises: Italy’s Saipem;
The contract, which is valued at McDermott of the US; a consortium of India’s
$142mn-$355mn, is expected to take L&T L&T and UK-based Subsea 7; US firm Dynamic
around 30 months to complete and will cover the Industries; a consortium of UAE-based Lamprell
construction of industrial facilities, an adminis- and Dutch company Royal Boskalis Westmin-
tration building, ancillary buildings, associated ster; the UAE’s National Petroleum Construc-
infrastructure and storage yards along with civil, tion Co. (NPCC); Sapura Energy of Malaysia;
structural and architectural works. a consortium of TechnipFMC and Malaysia’s
SPARK is being developed in Saudi’s East- MMHE; China Offshore Oil Engineering Co.
ern Province, just to the east of Abqaiq, which and South Korea’s Hyundai Heavy Industries.
is home to an oil and natural gas liquids (NGLs) In February, companies were told that they
plant which handles up to 7mn barrels per day must relocate their regional headquarters to
(bpd). L&T’s contract was awarded by the local Saudi Arabia by January 1, 2024 if they want to
subsidiary of Dubai’s Oilfield Supply Centre, continue having access to government contracts.
OSC Saudi. An official source told the Saudi Press Agency
In a company statement, MV Satish, L&T’s that once the policy is implemented, Riyadh will
senior vice-president for buildings, said: “This cease contracting with companies primarily
project will act as a business incubator to sup- based elsewhere in the region, with the legisla-
port the oil and gas industry in the kingdom and tion applying to those working with Saudi agen-
help accelerate industrial growth in the energy cies, institutions and government-owned funds.
sector.” With many energy companies having built a
The development comes amid a push from Gulf base in the UAE, the move will represent a
Riyadh to create jobs and turn the capital into clear challenge to the Emirates’ domination of
one of the world’s top 10 city economies. Mean- foreign direct investment (FDI) as the Kingdom
while, Aramco has been pushing local content seeks to knock it from the top spot. That being
through various significant initiatives, of which said, Aramco already requires strict compliance
the in-Kingdom total value-add (iktva) is the with local content from all foreign partners and
most important, and forms a major part of its the company is building out the King Salman
commitment to Saudi Vision 2030. Global Maritime Industries Complex at Ras Al
L&T is a signatory of state oil firm Saudi Ara- Khair and as well as SPARK, all in Eastern Prov-
mco’s long-term agreements (LTAs), alongside ince, where joint ventures are being developed to
UK-based Subsea 7, which grants automatic and promote local energy services and innovation.™

P12 www. NEWSBASE .com Week 17 28•April•2021