Saudi Aramco is set to cancel three offshore contracts previously awarded to offshore engineering contractor McDermott due to the latter’s inability to provide the required performance bank guarantees.
Despite being initially identified as the potential frontrunner for the three offshore deals for the ambitious Zuluf oilfield expansion project, valued at over $1.8 billion, and being given a letter of award in May, McDermott’s financial constraints have made it difficult for the company to meet Aramco’s stringent financial criteria.
Insiders expect Aramco to soon issue cancellation letters
Insiders expect Aramco to issue cancellation letters to McDermott soon and, as a result, the company is now exploring alternative bidders, with Italian firm Saipem and Abu Dhabi’s NPCC said to be among the contenders.
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