SABIC to ally with two engineering services companies
Saudi Arabia Basic Industries Company (SABIC) is moving toward alliance with a short selection of two companies to provide engineering services in similar way to Saudi Aramco General Engineering Services plus (GES+) pre-qualification program.
Once qualified, these two companies should be given the opportunity to upgrade and revamp one SABIC plant each.
Then if the engineering performances are measured successful, SABIC will split its 15 plants in Saudi Arabia between the two qualified companies.
These 15 companies should be selected among:
– Kemya and PetroKemya
– Arrazi, GAS and Hadeed
– Sadaf, Sabtank, Safco, Sharq
– Ibn Albaytar, Ibn Rushd, Ibn Sina, Ibn Zahr
– Yanpet and Yansap
Actually six engineering companies have expressed their interest to SABIC to be invited to bid:
– Fluor Corporation from USA
– Hyundai Engineering and Construction from South Korea
– Jacobs Engineering from USA
– KBR from USA
– Samsung Engineering from South Korea
– Technip from France
SABIC E&PM leads the bidding and selection process
SABIC E&PM is a Department created in 2003 to develop and maintain an organizational structure, systems, procedures and best practices related to the major projects execution.
In that respect, SABIC E&PM is the center of excellence and expertise for engineering and project management.
SABIC affiliates are considered as customers, to whom SABIC E&Pm is offering their expertise and services as soon as the operating units face major projects running out of their capabilities either because of the size, the complexity or the lack of available resources at a given period of time.
The first discussions between SABIC E&PM with the six potential bidders, confirmed the interest for this approach as long as the conditions of the tender are well defined and the key performances indicators (KPI) are also well known to measure success when contracts are awarded.
At tendering stage price per man hour will be the driver.
While in charge, the KPIs will require the engineering services companies to add resources to deliver on quality and on time.