HOUSTON, April 16, 2025 – McDermott has been awarded a three-year extension of its Long-Term Agreement (LTA) Framework by Aramco to support brownfield and greenfield developments on some of Saudi Arabia’s largest offshore assets. The extension optimizes the current agreement and extends the duration of the agreement.
“The extension of this prestigious agreement is testament to our application of project delivery best practices through the past decade on the initial LTA contract and other lump-sum turnkey contracts we hold with Aramco,” said Mike Sutherland, Senior Vice President, Offshore Middle East. “Aramco’s continued investment in the development and maintenance of the Saudi offshore fields demonstrates their efforts to provide energy reliability.”
In line with Saudi Vision 2030, McDermott has ambitious long-term growth plans in Saudi Arabia. Extension of the LTA will bolster support of the in-Kingdom Total Value Add (IKTVA) program and other local content commitments.
As part of its commitment to IKTVA, McDermott plans to complete construction of its SAFIRA fabrication yard to enhance project delivery capability and support its growing Saudi-based project management, engineering and procurement presence. McDermott will continue its commitment to recruitment and development of talented Saudi nationals at all levels. SAFIRA will have the capability to fabricate and assemble the offshore platforms, jackets and structures for subsea pipelines required to support Aramco's planned offshore expansions.
About McDermott
McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Our customers trust our technology-driven approach engineered to responsibly harness and transform global energy resources into the products the world needs. From concept to commissioning, McDermott's innovative expertise and capabilities advance the next generation of global energy infrastructure—empowering a brighter, more sustainable future for us all. Operating in over 54 countries, McDermott's locally-focused and globally-integrated resources include more than 30,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties. These forward-looking statements include, among other things, statements about the expected benefits associated with the extension of the LTA and expected activities in Saudi Arabia discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit or capital markets; our inability to successfully execute on contracts in backlog; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties; changes in industry norms; actions by lenders, other creditors, customers and other business counterparties of McDermott and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. This communication reflects the views of McDermott's management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Global Media Relations
Reba Reid
Senior Director, Global Communications and Marketing
+1 281 588 5636
RReid@McDermott.com