DHAHRAN, 13 February 2007 — Saudi Aramco yesterday signed long-term contracts totaling more than $600 million with three Saudi companies, covering the operation of 20 support vessels for its marine activities.
Zamil Operations and Maintenance Co., Ltd., of Alkhobar; Hadi H. Al-Hammam Establishment of Ras Tanura; and Bakri Navigation Co., Ltd., of Jeddah signed the agreements, under which they will operate anchor handling tugs along with supply and safety standby vessels in support of Saudi Aramco’s operations in the Arabian Gulf.
The contracts mark the largest outsourcing effort so far undertaken by the company’s Marine Department with its marine fleet of harbor and offshore support vessels. The five-year contracts with two-year extensions call for high levels of Saudization and stipulate that through the course of the agreements new vessels will be built — most in Saudi Arabia — to fulfill the terms.
“These agreements will boost the local economy,” said Amer A. Al-Sulaim, executive director of Saudi Aramco Industrial Services. “We only outsource such activities to the private sector when it is demonstrated that the same quality of service can be provided that we could provide internally, and these companies have demonstrated that.”
Zamil Operations and Maintenance Co. has worked with Saudi Aramco for 25 years and already operates 42 support vessels; Bakri Navigation Co., which also operates Red Sea ports, operates more than 30 vessels; and the Hadi Al-Hammam Establishment operates 25 vessels.