McDermott has been selected by Aramco as one of 11 contractors awarded a Project Management Consultancy (PMC) Long-Term Agreement (LTA) to support the delivery of major energy, petrochemical, downstream and low-carbon projects across Saudi Arabia.
The multi-year framework agreement positions McDermott as a strategic project management and engineering partner within Aramco’s extensive capital investment programme, reinforcing the growing importance of integrated project delivery expertise as the Kingdom continues to expand and diversify its energy sector.
Under the agreement, McDermott will provide a range of services spanning front-end project development, engineering, pre-FEED and FEED studies, and project management consultancy support. The company will draw on its global engineering network and project delivery experience to help advance some of the region’s largest and most complex infrastructure programmes.
A significant feature of the award is the establishment of a strategic partnership between McDermott and Saudi-based Solutions Leaders Fayez Engineering (SLFE), an Aramco-approved engineering services contractor. The collaboration combines international project delivery capability with local engineering expertise, supporting Saudi Arabia’s ongoing drive to strengthen domestic technical capacity and localisation.
For project professionals, the agreement highlights the increasing role of project management consultancies in helping owners manage expanding portfolios of large-scale capital projects. As energy companies pursue increasingly ambitious investment programmes, the ability to coordinate multiple stakeholders, manage complex interfaces and maintain governance across project portfolios has become a critical success factor.
The agreement also reflects a broader shift in the energy sector towards long-term strategic partnerships rather than project-by-project engagements. Framework arrangements such as this enable owners to establish consistent delivery models, standardise governance approaches and improve knowledge transfer across multiple programmes.
Michael McKelvy, McDermott’s Chief Executive Officer and Chair of the Board, said the agreement reflects both the company’s long-standing relationship with Aramco and its commitment to supporting the Kingdom’s development priorities.
“Just as the United States and the Kingdom share a commitment to long-term collaboration, we share a commitment with SLFE to localisation, knowledge transfer and sustainable capacity building within the Kingdom.”
The partnership will operate through an integrated delivery model combining in-country and international resources. SLFE will provide engineering support and client engagement within Saudi Arabia, while McDermott will oversee technical leadership, execution planning and programme governance through its global engineering centres.
This hybrid approach is becoming increasingly common on major infrastructure projects, allowing organisations to combine global expertise with local knowledge while supporting national workforce development objectives.
Rob Shaul, McDermott’s Senior Vice President of Low Carbon Solutions, said the award demonstrates confidence in the company’s ability to support complex programmes in the region.
“This long-term agreement reflects Aramco’s confidence in our proven execution capabilities and our track record of delivering complex, world-class projects in the Kingdom.”
For Saudi Arabia, the agreement supports wider economic objectives under Vision 2030, including the development of domestic engineering capability, increased local content participation and the growth of knowledge-based industries.
Ashraf Alkhaznadar, President and CEO of SLFE, said the partnership would help strengthen national engineering capacity while supporting Aramco’s long-term investment ambitions.
“Together, we bring complementary strengths that support Aramco’s long-term vision while continuing to develop national engineering capability.”
From a project delivery perspective, the agreement demonstrates how owner organisations are increasingly looking beyond engineering design alone and placing greater emphasis on programme governance, strategic planning and project controls to improve outcomes across complex capital portfolios.
As Saudi Arabia continues to invest heavily in energy infrastructure, industrial development and low-carbon technologies, demand for sophisticated project management expertise is expected to remain strong. The McDermott-SLFE partnership positions both companies to play a key role in helping deliver the next generation of strategic projects that support the Kingdom’s economic transformation and energy transition ambitions.
