Saudi-based energy and industrial zone King Salman Energy Park (SPARK) announced on Wednesday the groundbreaking for a 277,000 square metre drilling and workover site by Aramco and Horizon Project Company.
Aramco and Horizon Project Company have signed a 22-year Build, Own, Operate and Transfer (BOOT) contract for the project, SPARK said in a press statement.
Horizon Project Company is a special purpose vehicle jointly owned by a consortium of Al Fouzan Al Sabiq Holding Company and Almutlaq Real Estate Investment Company.
Construction of the facility is scheduled to be completed by the second quarter of 2023, the statement said, adding that it will provide infrastructure and amenities for a workforce of 1,200 drilling and workover employees.
The project will centralise facilities for Aramco’s Drilling and Workover Services Department in a single location, further the oil and gas giant's collaboration with oilfield service providers and support the development and localisation of key industries such as rig and equipment manufacturing, as well as casting and forging, the statement noted.
Senior Vice-President of Upstream at Aramco, Nasir Al-Naimi, said: “This is another significant venture by Aramco that will contribute to business continuity. We expect the new drilling and workover facilities to attract other oil field services companies, who have an indispensable role to play within the collaborative setting of an integrated energy ecosystem.”
Vice-President of Drilling and Workover at Aramco, Abdulhameed Al-Rushaid, said: “The development strategically advances our role as an anchor tenant at SPARK. As an integrated ecosystem for the energy sector, SPARK is being designed to capture the full economic value of demand for energy-related goods and services.”
SPARK President and CEO, Saif S. Al Qahtani, said: “We’re excited to announce Aramco’s new drilling and workover head office and industrial hub at SPARK. Its establishment will enhance the oil and gas supply chain by utilising SPARK’s advanced offerings, such as its logistics hub and dry port, to establish a thriving eco-system."
The 50 sq.km SPARK is located in the Eastern province of Saudi Arabia.
(Writing by SA Kader; Editing by Anoop Menon)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2021