A joint venture comprising UAE-based oil rig builder Lampell, oil company Saudi Aramco, the National Shipping Company of Saudi Arabia (Bahri), and South Korean shipbuilder Hyundai Heavy Industries Co. Ltd., has begun construction works at Saudi Arabia’s new maritime yard, at the Ras Al Khair site, on Friday.
According to Lempell, the “International Maritime Industries Company” (IMI) can start business, after a loan agreement with the proposed Government lender, the Saudi Industrial Development Fund, an important condition for the success of the IMI yard, in addition to the significant investment made by the Saudi government in the facility’s infrastructure. Lampell explained:
The construction process at the site is underway with dredging and associated activities in progress. The partners have made progress in creating the business infrastructure, including the management organisation, the internal governance structure and the detailed business plan.
This follows the first capital contribution by each partner in accordance with their pro rata share and in line with the original drawdown schedule. It is planned that, pursuant to one of the offtake agreements, ARO Drilling to order 20 jackup rigs from the IMI yard over the next ten years.
The yard is expected to start service operations in 2019 and achieve full operational capacity by 2022. Saudi Aramco stated:
This ambitious project will help drive the Kingdom’s economic diversity and growth, and localize energy sector industries through the creation of “anchor projects” that will provide the cornerstone for the growth and development of supply chains. It will also position the Kingdom to be a technological center with top global expertise in the field of marine engineering and construction in the region.
