Arabtec subsidiary wins Dhs196m contract from Saudi Aramco

Arabtec Holding, a contractor for social and economic infrastructure, on Tuesday announced that its wholly-owned subsidiary, Target Engineering Construction Company, has been awarded around SAR200 million (Dhs196m) contract by Saudi Aramco for the replacement of five storage tanks at Ras Tanura Refinery in the Eastern Province.

A unit of Arabtec Holding, the Dubai-listed construction company, won a 200 million Saudi riyal (Dh196m) contract from Saudi Aramco for the replacement of storage tanks at Ras Tanura refinery in Saudi Arabia. Target Engineering Construction Company, a wholly owned subsidiary of Arabtec, won the contract, the company said in a statement to the Dubai Financial Market, where its shares trade.

In a statement by the company on the Dubai Financial Market website, Arabtec said that the project scope of works includes the replacement of three naphtha storage tanks and two slop oil storage tanks.

Commenting on the announcement, Arabtec’s Group Chief Executive Officer, Wail Farsakh, said, “We are delighted to be continuing to build our relationship with Saudi Aramco in the Kingdom of Saudi Arabia. In line with our strategy, this important award further builds the group’s presence in the oil and gas sector.”

Arabtec is the UAE’s largest-listed contracting company and has a workforce of more than 45,000.

Arabtec’s industrial, infrastructure and mechanical as well as electrical and plumbing business lines remained profitable last year.

Saudi Aramco, the world’s largest oil-exporting company, is reorganising its downstream business, which includes refining and petrochemicals, to improve efficiency.  The downstream business will operate through four units - fuels, chemicals, power and a pipelines, distribution and terminals division, the company said earlier this month.

Target Engineering also won a Dhs280m contract for the expansion and upgrade of a water disposal facility in Saudi Arabia last year.

A unit of Arabtec Holding, the UAE-listed construction company, won two contracts worth Dhs210 million to carry out works at an offshore oil facility and and for the construction of a new commercial building in Abu Dhabi.

Target Engineering has been awarded a Dhs84m by Adnoc Offshore, an offshore arm of the state owned Abu Dhabi National Oil Company. The project involves replacement works for ‘slug catchers’ - static pieces of equipment used in upstream oil production to minimise irregular flow from oil and gas pipelines. The work will take place at the Satah plant on Zirku Island, which is about 120km north west of Abu Dhabi. “The contract works will commence immediately for a duration of 22 months. This award is line with the group’s strategic priority to diversify its backlog into different sectors, including the industrial sector,” Arabtec, said in a statement to the Dubai Financial Market, where its shares trade.

The company has also been awarded a Dhs126m contract for the construction of a 19-storey commercial building, Sunset Square, in Abu Dhabi.

Agencies