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State-owned oil company Saudi Aramco has signed a joint venture agreement with UAE’s Lamprell plc, the National Shipping Company of Saudi Arabia (Bahri), and South Korean shipbuilder, Hyundai Heavy Industries Co. Ltd., to establish, develop and operate a world-class maritime yard.
The maritime project will be located in the King Salman International Complex for Maritime Industries and Services, Ras Al-Khair, near the Jubail Industrial City, the oil giant said in a statement on Wednesday.
The new shipyard will have the capacity to manufacture four offshore rigs, over 40 vessels, including three very large crude carriers (VLCCs), and service over 260 maritime products annually.
Production is expected to begin in 2019 with the facility reaching its full production capacity by 2022.
The new JV, which will be the largest in the region in terms of production capacity and scale, localizes essential links of Saudi Aramco’s supply chain related to offshore drilling and shipping activities.
The facility would also capitalize on the rapidly-growing maritime requirements in the region by offering globally competitive, safe, high quality and on-time solutions to customers.
In January 2016, the four companies signed a memorandum of understanding (MoU) to develop a shipyard at Ras Al-Khair in eastern Saudi Arabia, where a port city is being developed.
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