Saudi Aramco has awarded a contract to U.S. company General Dynamics (NYSE: GD) as the state oil giant aims to increase security at its offshore facilities, the company said on Dec. 6.
Industry sources told Reuters in July the contract involves installing long-range integrated security systems at nine offshore sites in the Gulf.
Apart from General Dynamics, Aramco received bids from other defense firms, including Raytheon Co. (NYSE: RTN) of the U.S., Germany’s Rheinmetall AG, Leonardo’s Selex ES Saudi Arabia.
No value was provided, but sources told Reuters that General Dynamics will work with Saudi Binladin Group.
Saudi Aramco has been signing deals with foreign firms who have established local manufacturing as part of its in-kingdom total value add program (IKTVA).
Under IKTVA, Aramco aims to double the percentage of locally-produced energy-related goods and services to 70% by 2021 and to export 30% of the total domestic energy goods and services produced in the Kingdom over the same time frame.
The project supports such an initiative, according to Fahad al-Helal, Aramco’s vice president for project management.