Saudi Aramco forms JV to build maritime yard in Saudi Arabia

WCN Editorial Team 2 Jun 2017 MIDDLE EAST BUILDINGS

Saudi Aramco has formed a joint venture (JV) with National Shipping Company of Saudi Arabia (Bahri), London-listed Lamprell, and South Korea's Hyundai Heavy Industries build a maritime yard in Saudi Arabia.

The new yard will have a capacity to manufacture four offshore rigs, over 40 vessels including three VLCCs, and service over 260 maritime products per year.

The facility is expected to start major production operations in 2019 and become fully operational by 2022. The JV partners will set up a new limited liability company (JVCo) to operate, maintain and manage the facility.

The project is estimated to cost around $5.2bn, of which nearly $3.5bn will be procured through government funding. The remaining project cost will be financed by JVCo.

“The complex is intended to help drive the kingdom's economic diversity and growth, and localise energy sector industries and is also intended to position the kingdom as a technological centre with world class expertise in the field of marine engineering and construction in the region. The complex is planned to be the base for a number of different maritime industrial and service businesses,” Lamprell said.

 

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