Saudi Arabia: Wood Group Subsidiary Wins GES Contract by Saudi Aramco

A bidding group led by Mustang Al-Hejailan Engineering, a Wood Group company, has been awarded a general engineering services (GES+) contract by Saudi Aramco. The contract establishes a long-term framework for the supply of engineering, procurement and construction management services to support the execution of onshore and offshore oil & gas projects within the Kingdom of Saudi Arabia. The duration of the contract is five years, plus three one-year extension options.

The release of work under the contract is contingent on Mustang Al-Hejailan Engineering finalizing agreements to combine with two well-respected Saudi-owned engineering businesses, Dar E&C, which will be the second largest participant in the bidding group, and PI-Consult (taken together, the ‘bidding group’). Further details will be announced once the terms of the transactions have been finalized. The intention is that the resources of Mustang Al-Hejailan Engineering, Dar E&C and PI-Consult will be combined to create a leading in-Kingdom engineering & project management services provider. Mustang will continue to lead the company.

“We are delighted with this award and pleased to have been given the opportunity to strengthen our partnership with Saudi Aramco as one of their preferred providers,” said Steve Knowles, president of Mustang. “We are excited to work with Saudi Aramco to deliver the challenging projects they have scheduled, both on- and offshore, over the coming years.”

Saudi Aramco, Saudi Arabia’s national oil company, selects services from approved contractors that are stringently evaluated and meet rigid standards and specifications. The bidding group was required to provide extensive documentation of capabilities and processes, along with consistent proof of quality. The evaluation process included independent audits, surveys, quality management system evaluations, and reviews of engineering capabilities and an in-Kingdom business plan.

Faisal Al-Hejailan, president of Mustang Al-Hejailan Engineering added, “Saudi Arabia is the world’s largest producer and exporter of oil and we look foward to working closely with Saudi Aramco, one of the world’s leading oil companies, to help maximize the region’s market potential. We recently moved to a much larger office facility and are upgrading our systems to better meet the market demands and develop a strong, local engineering capability in the region.”

Mustang Al-Hejailan Engineering, 55 per cent owned by Mustang, is located in Al Khobar and is a fully registered company in the Kingdom of Saudi Arabia.

Mustang is a global engineering, project management, procurement, and construction operations company serving the upstream oil and gas, refining and chemicals, pipeline, automation and control, and industrial markets. Mustang, a Wood Group company, has offices in the United States, United Kingdom, India, Malaysia, West Africa and the Middle East.

Wood Group is an international energy services company with approximately $5.0 bn sales, employing approximately 29,000 people worldwide and operating in 50 countries. The Group has three businesses—Engineering & Production Facilities, Well Support, and Gas Turbine Services—providing a range of engineering, production support, maintenance management and industrial gas turbine overhaul and repair services to the oil & gas, and power generation industries worldwide.

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Source:Wood Group, March  3, 2011;