Italy’s Saipem has inked a memorandum of understanding (MoU) with Saudi construction company Abdel Hadi Abdullah Al Qahtani & Sons Company (AHQ) to set the path towards a joint venture (JV) in the kingdom.
The joint venture aims to maximise local value creation. It also hopes to become a first-tier player in the execution of onshore construction works as well as of onshore pipeline EPC projects.
The combined entity will add Saipem’s engineering, procurement, and construction (EPC) competencies to AHQ’s experience in logistics, construction, and supply chain.
Commenting on the agreement, the chief operating officer of the Onshore E&C Division at Saipem, Maurizio Coratella, said: “Saudi Arabia has been a core market to Saipem from the outset and our ambition is to maintain our EPC leading role in the country. We are committed to establishing this Joint Venture together with AHQ with the aim of harnessing synergies to support our key client Saudi Aramco.”
Coratella added: “A central feature of the partnership is the possibility to operate in compliance with the requirements of the IKTVA (In-Kingdom Total Value Add) programme launched by Saudi Aramco as an integral part of its contracts to achieve 70% localisation of spending by 2021.”
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