McDermott has secured a place on Aramco’s 11-contractor Project Management Consultancy Long-Term Agreement, positioning the company for future pre-FEED, FEED, engineering and project management scopes across Saudi Arabia’s energy, downstream, petrochemical and low carbon investment pipeline.
Why it matters
This is not a single project award, but it could become a powerful gateway into multiple future packages.
Through McDermott Nederland B.V., McDermott will support Aramco’s large-scale capital programs under a multi-year PMC framework. The agreement also brings in Solutions Leaders Fayez Engineering as McDermott’s Saudi partner, strengthening in-kingdom execution capability and alignment with Aramco’s IKTVA localization objectives.
For contractors and suppliers, the key signal is clear: Aramco is building delivery capacity for a broad investment cycle, and PMC contractors often sit close to early project definition, execution planning and future EPC packaging decisions.
Opportunity breakdown
While no contract value was disclosed, PMC LTAs of this type typically generate value through call-off work orders rather than one fixed lump-sum award.
Based on EPCIntel.com’s database of comparable framework agreements, McDermott’s potential revenue opportunity could reasonably sit in the low tens of millions of dollars over the term, depending on task order volume, project allocation and the number of Aramco programs assigned.
Typical spend exposure linked to future Aramco projects may include:
Engineering and PMC services: USD 20 million to USD 75 million per contractor over a multi-year term
Pre-FEED and FEED packages: USD 5 million to USD 40 million per major development
Project controls, planning and cost management: USD 2 million to USD 15 million per program
Specialist low carbon and downstream studies: USD 1 million to USD 10 million per scope
Future EPC-linked opportunities: potentially hundreds of millions to several billion dollars, depending on downstream, petrochemical or low carbon project scale
Contractor positioning
McDermott brings global engineering, project governance and complex project delivery experience, while SLFE adds local engineering support and Saudi execution capability.
That combination matters because Aramco’s contracting direction increasingly favors companies that can deliver both international technical depth and strong local content. The Out-of-Kingdom and In-Kingdom delivery model gives McDermott flexibility, while allowing SLFE to play a visible role in engineering and client support inside Saudi Arabia.
Epcintel.com view
This award should be read less as a headline contract and more as a strategic positioning move.
PMC framework agreements put contractors close to the front end of Aramco’s capital planning. That can influence scope definition, execution strategy, risk allocation and downstream EPC packaging. For McDermott, the LTA strengthens its long-term Saudi presence and keeps it connected to one of the world’s largest project pipelines.
For the wider supply chain, this is another reminder that Saudi Arabia’s next investment wave is not limited to upstream oil and gas. The opportunity set spans downstream, petrochemicals, energy infrastructure and low carbon projects, creating future demand for engineering, process technology, modularization, fabrication, rotating equipment, electrical systems, automation and construction services.
