The memorandum of understanding on the deal outlines support for the local economy by working to form oil and gas equipment manufacturing and services facilities in Saudi Arabia, the energy giant says.
Oilfields Service Contracting Co. will build, plan and operate the energy park, which will leave its clients to focus on their individual efforts. The project is the first of its kind in Saudi Arabia using a common user supply base concept.
A 370-acre site at a second industrial city in Dammam will host the energy park. The project has an estimated cost of $250 million.
The design envisions a self-contained park with industrial, residential and education zones, with a special focus on the manufacture of equipment used in the oil industry.
The energy park will contain more than 120 facilities, creating more than 2,000 new jobs.
Commercial operation at the energy park is set for 2011.