Onshore/Offshore Facilities

Aramco, McDermott Team Up on New Saudi Yards

The two new facilities are expected to increase Saudi Arabia’s total annual offshore fabrication capacity to 100,000 mt.

Two new offshore fabrication yards being built by Aramco, NPCC, and McDermott are expected to startup in the third quarter of 2023.

Saudi Arabia will grow its offshore fabrication capacity by 200% with the establishment of two new fabrication yards by Aramco and its partners at Raj Al Khair. The new yards are being constructed in collaboration with National Petroleum Construction Company (NPCC) and McDermott International. They are expected to fabricate and assemble offshore platforms, jackets, and structures for subsea pipelines.

Saudi Arabia Fabrication In-Kingdom Ras Al-Khair (SAFIRA) fabrication yard—to be located at the King Salman International Complex for Maritime Industries and Services—is another step to support the nation’s Saudi Vision 2030 and increase local content. McDermott will oversee construction of the facility, which will be performed by a subcontractor.

Startup of the facilities is planned for the third quarter of 2023, with the initial combined production capacity estimated at roughly 70,000 mt per year, increasing the Kingdom’s total offshore fabrication capacity from 30,000 mt to 100,000 mt annually.

“We believe the creation of these two yards represents a significant addition to infrastructure development for the maritime industry,” said Ahmad A. Al-Sa’adi, Aramco senior vice president of technical services. “They are expected to harness latest technologies, support localization efforts, improve the supply chain, and contribute to the development of Saudi talent. In addition, they aim to contribute to economic diversification in the Kingdom.”

The offshore yards aim to complement efforts to localize the Kingdom’s maritime industry. When fully operational, the yards are expected to create up to 7,000 direct and indirect jobs, with a target Saudization rate of 70%. The new yards also aim to supplement the existing King Salman International Complex for Maritime Industries and Services.

Aramco added that the yards are intended to bring cutting-edge technologies and digital solutions to in-Kingdom fabrication and to accelerate project delivery schedules and reinforce the local supply chain.

“This fabrication facility will further enhance McDermott's in-Kingdom project delivery capability and support our growing Saudi-based project management team, engineering and procurement offices, and ongoing recruitment and development of talented Saudi nationals at all levels in the company," said Mike Sutherland, McDermott's vice president, offshore operations.