DUBAI: Saudi Aramco and US-based contractor McDermott are exploring the feasibility of localizing onshore modular construction as part of the Kingdom’s push to boost local industries.

Modular construction is a process where a building is constructed off site before being transported and assembled at a final location.

The two companies will use McDermott’s Saudi Arabia Fabrication in Ras Al-Khair (SAFIRA) facility to conduct the feasibility study.

Under the memorandum of agreement, the pair will explore collaboration on the plant modularization concept, which will support Aramco’s offsite construction plans for its upstream and downstream projects.

“This agreement demonstrates Saudi Aramco's confidence in McDermott as a trusted partner and is an opportunity for both companies to exchange knowledge,” Tareq Kawash, McDermott’s senior vice-president in the region, said.

The SAFIRA facility, located within Aramco’s King Salman International Complex for Maritime Industries and Services, is yet to be operational.

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