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Saudi local content escalates along Aramco’s GES+ initiative

Foster Wheeler, Jacobs, KBR, Mustang and SNC Lavalin signed GES+ contracts with Saudi Aramco

Saudi Aramco’s General Engineering Services Plus (GES+) initiative requires that the majority of its engineering services requirements be conducted in the Kingdom of Saudi Arabia in order to enhance the development of training and domestic employment opportunities.

With the GES+ initiative, Saudi Arabia intents to increase its local content with higher added value engineering activities.

The qualification of the engineering companies and contractors by Saudi Aramco to the GES+ initiative will become the pre-qualification stage to submit bid on projects for Front End Engineering and Design (FEED) or Project Management Consultancy (PMC) contracts.

In practice the GES + initiative requires the foreign engineering companies and contractors to establish long term joint venture with local engineering companies and contractors.

These joint ventures will be the frame to support the co-operation between the global companies and the locals to transfer expertise and enhance Saudis engineering competences.

So far Foster Wheeler, Jacobs Engineering, KBR, Mustang and SNC Lavalin have signed GES+ contracts with Saudi Aramco.

Foster Wheeler partners with SOFCON and SCEC K&A

In March 2011, Foster Wheeler, SOFCON and SCEC K&A created a consortium to meet the requirements of Saudi Aramco’s GES+ initiative .

In June 2012, the Consortium signed a GES+ Contract with Saudi Aramco.

Foster Wheeler‘s subsidiary of its Global Engineering and Construction Group created a subsidiary consortium with partners comprising:

 – A. Al-Saihati, A. Fattani & O. Al-Othman Consulting Engineering Co., (SOFCON)

 – Saudi Consolidated Engineering Company – Khatib & Alami (SCEC K&A)

Foster Wheeler and its partners have signed a GES+ contract with Saudi Aramco for the provision of services associated with Saudi Aramco’s General Engineering Services Plus (GES+) initiative.

The GES+ contract will have a duration of five years with options available for extensions.

Under the terms of the contract, Foster Wheeler and its consortium partners will perform engineering and project management services including:

 – Pre-front-end engineering design (pre-FEED)

 – Front End Engineering and Design (FEED)

 – Detailed design and procurement services for onshore/offshore oil and gas

 – Refining

 – Petrochemicals

 – Associated infrastructure projects in Saudi Arabia.

The work will be executed from the offices of the consortium located in the city of Al-Khobar in the Kingdom of Saudi Arabia.

Jacobs allies with Zamel & Turbag (ZATE)

In March 2008, Jacobs Engineering (Jacobs) acquired a 60 percent stake in the Saudi Arabian firm of Zamel & Turbag Consulting Engineers (ZATE), now known as Jacobs ZATE.

The combination of ZATE with Jacobs‘ existing operations in the The Kingdom of Saudi Arabia results in a staff of more than 500 in the Middle East.

In May 2012Jacobs ZATE has been awarded a General Engineering Services Plus (GES+) contract by the Rabigh Refining and Petrochemical Company (Petro Rabigh) for its $15 billion facility

The potential value of the one-year contract is estimated at $1.5 million.

Petro Rabigh is a joint venture between Saudi Aramco and Sumitomo Chemical.

The Petrochemicals complex can produce 18.4 million tons per year (mpta) of petroleum-based products and 2.4 mpta of ethylene and propylene-based derivatives

Jacobs ZATE will provide:

 – Mechanical, electrical, civil, chemical engineering for Refinery and Petrochemicals

 –Drafting-related services

 – Management-related services

 – Any other engineering services required by the facility.

This contract renews Jacobs‘s commitment in the Middle East to provide world-class services to Oil & Gas, Infrastructure, and Buildings sectors in the region.

KBR acquired the local AMCDE

In February 2012, KBR acquired Abdulhadi and Al-Moaibed Consulting Engineering Co. (AMCDE), a Saudi owned professional engineering company, and officially formed KBR-AMCDE.

KBR will hold a 67% interest in this new entity.

With this acquisition KBR could complete the registration and licensing of the new KBR-AMCDE within the GES+ initiative with Saudi Aramco to carry out general engineering and project management services.

KBR-AMCDE enterprise is approximately 400 people. 

This new entity will provide Saudi Aramco with:

 – Front End Engineering and Design (FEED)

 – Detailed design

 – Procurement and project management services (EPCMS)

KBR-AMCDE will perform the GES+ work under a five-year contract in support of Saudi Aramco‘s Capital Program.

KBR also expects, over time, to use the KBR-AMCDE enterprise to perform engineering work outside the hydrocarbons sector in Saudi Arabia.

KBR-AMCDE will work from offices in Al-Khobar, Saudi Arabia.  

Mustang joins forces with Hejailan, DAR and PI Consult

In June 2012, Saudi Aramco has signed Procurement and project management services (EPCMS) contracts as part of its General Engineering Services Plus (GES+) initiative with a consortium comprising:

 – Mustang International

 – Faisal Jamel Al-Hejailan Engineering Company (Mustang Hejailan),

 – Dar Al-Riyadh Engineering Consultants (DAR)

 – Petro-Infrastructure Engineering Consultants Company (PI Consult)

The consortiums was selected following a competitive bidding process.

To support its GES+ capital program, Saudi Aramco the scope of work of the qualified contractors is to carry out:

 – Front End Engineering and Design (FEED)

 – Detailed design

 – Material procurement

 – Project management services (EPCMS)

Once registered and licensed in-Kingdom, the consolidated entities will be independent a standalone company.

The GES+ contracts are for the duration of five years with options available for extensions. 

SNC Lavalin shares equity with Zuhair Fayez

In May 2011, SNC-Lavalin was the first foreign engineering company to announce that it has been selected, together with its local Saudi Arabian partner Zuhair Fayez, for the Saudi Aramco GES+ initiative.

To do so, SNC Lavalin and Zuhair Fayez created a  50/50 joint venture.

Under the GES+ contract, SNC-Lavalin and Zuhair Fayez will perform:

 – Front End Engineering and Design (FEED)

 – Select detailed engineering

 – Project management services (EPCMS)

These projects include:

 – Oil and gas production and processing facilities

 – Onshore and offshore

 – Infrastructure projects

 – Refining

 – Petrochemicals facilities.

This work will be executed out of the joint venture offices in Al-Khobar, Saudi Arabia.

SNC Lavalin and its Zuhair Fayez partner will perform general engineering and project management services  for Saudi Aramco under a 5 years  (GES+) contract with reimbursable basis.

In signing five GES+ contracts with global engineering companies (Foster Wheeler, Jacobs, KBR, Mustang, SNC Lavalin), Saudia Aramco has managed to involved eight local engineering companies (SOFCON, SCEC K&A,  AMCDE, ZATE, Hejailan, DAR, PI Consult, Zuhair Fayez) in this engineering competence enhancement program that Sabic and Ma’aden should join soon.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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