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Italian oil and gas contractor, Saipem, signed a memorandum of understanding (MoU) with Saudi-based construction firm, Abdel Hadi Abdullah Al Qahtani & Sons Co (AHQ), it said in a statement today.
With this agreement, both companies will set up a joint venture (JV) in Saudi Arabia, to maximize local value creation and become a first tier player in the execution of onshore construction works as well as pipeline engineering, procurement and construction (EPC) projects.
“We are committed to establishing this JV with AHQ with the aim of harnessing synergies to support our key client Saudi Aramco,” Maurizio Coratella, Chief Operating Officer of the Onshore E&C Division, said.
“A central feature of the partnership is the possibility to operate in compliance with the requirements of the In-Kingdom Total Value Add (IKTVA) program by Saudi Aramco to achieve 70% localization of spending by 2021,” Coratella further added.
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