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SABIC to benchmark Saudi Aramco GES+ engineering services

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.

SABIC is preparing a call for tender for engineering services and project management consultancy (PMC) support.

In the same way as the Saudi Aramco GES+ contract, the qualified engineering companies should be awarded to provide SABIC with:

 – Feasibility Study

  Pre-front end engineering and design (pre-FEED)

 – Front end engineering and design (FEED)

 – project management consultancy (PMC)

In respect with the number and size of the facilities SABIC is planning to qualify only two engineering services companies instead of five for Saudi Aramco GES+.

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

On SABIC side the process is managed by SABIC Engineering and Project Management (SABIC E&PM).

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.

The added value for SABIC relies on the quality of the engineering and project management services provided internally by the SABIC E&PM teams.

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.

In this context the outcome of the first discussions is for SABIC E&PM to be more specific in its requirements before proceeding with its call for tender that should take place in mid 2013.

For Saudi Aramco, the GES+ program had also involved seven companies at start from which five had been selected (Jacobs, KBR, Mustang Engineering, Foster Wheeler, SNC Lavalin).

In the meantime, Foster Wheeler has been replaced by WorleyParsons from Australia.

With SABIC they will be only two, scaling up the level of competition between Fluor, Hyundai E&C, Jacobs, KBR,  Samsung Engineering and Technip.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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