This article first appeared in The Edge Financial Daily on November 29, 2018

KUALA LUMPUR: Sapura Energy Bhd’s wholly-owned subsidiaries Sapura Fabrication Sdn Bhd and Sapura Saudi Arabia have been selected by Saudi Arabian Oil Co (Saudi Aramco) for its long-term agreement (LTA) programme.

The programme covers engineering, procurement, fabrication, transportation and installation (EPFTI) contracts to support Saudi Aramco’s offshore projects.

Sapura Energy said in a statement yesterday the LTA had confirmed Sapura Energy’s selection as an LTA contractor for Saudi Aramco after undergoing extensive assessment and meeting rigorous operational and safety requirements. This means its two subsidiaries can participate in bids for future EPFTI opportunities for offshore fields in Saudi Arabia.

“This win is a major milestone for Sapura Energy in line with our strategy to grow the business and deepen our presence in the Middle East,” said Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin.

The LTA programme is for six years, with extension options. A key component of the LTA is Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) programme, which aims to drive local value creation with LTA contractors.

“Sapura Energy is taking proactive steps to fulfil its IKTVA commitments by partnering local businesses and developing local capabilities by leveraging on its in-house technical and project management expertise, as well as its world-class fleet of offshore construction assets,” Sapura Energy said.