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Saudi Aramco signs landmark Joint Venture
agreement with Lamprell, Bahri, and Hyundai
heavy industries to establish a world-class
maritime yard in Saudi Arabia
Signing in the front row from left to right: Jong Chul Kim (VP of New Business Development, Hyundai Heavy Industries),
Christopher McDonald (CEO of Lamprell), Ziad Murshed (VP of New Business Development, Saudi Aramco), Ali Al Harbi (Acting CEO of Bahri).
Saudi Aramco signed a shareholder agreement
with Lamprell plc (“Lamprell”), the National
Shipping Company of Saudi Arabia (“Bahri”),
and Hyundai Heavy Industries Co. Ltd (“HHI”) to
enter into a joint venture (“JV”) partnership with
respect to the establishment, development and
operation of a world-class maritime yard, which
is the anchor project within the King Salman
International Complex for Maritime Industries
and Services located in Ras Al-Khair, near the
Jubail Industrial City on the Kingdom’s east
coast.
This strategic partnership among industry
leading companies is positioned to capitalize
on the rapidly-growing maritime requirements in
the region by offering globally competitive, safe,
high quality and on-time solutions to customers.
The new JV localizes essential links of Saudi
Aramco’s supply chain related to offshore
drilling and shipping activities, which will lead
to optimized cost, reduced response times
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Oil & Gas Leaders • June 2017
and improved agility for Saudi Aramco and its
affiliates.
The integrated maritime yard will be the largest
in the region in terms of production capacity
and scale, providing an unprecedented mix of
products and services in the region and enabling
Saudi Aramco and its supply chain partners
to meet their manufacturing, maintenance,
repair and overhaul requirements for offshore
oil and gas rigs, offshore support vessels, and
commercial vessels, including Very Large Crude
Carriers (VLCC). The new facility shall have the
capacity to manufacture 4 offshore rigs, over 40
vessels including 3 VLCCs, and service over 260
maritime products annually. Major production
operations are expected to commence in 2019
with the facility reaching its full production
capacity by 2022. This initiative will also
contribute towards localizing expertise related
to the maritime industry and job creation in the
Kingdom.