Saudi Aramco, partners launch JV to manage giant maritime complex

Saudi Aramco, Lamprell, Bahri and Hyundai Heavy Industries have officially launched their International Maritime Industries (IMI) joint venture which will be responsible for the management of the multi-billion dollar maritime and offshore yard being built in Saudi Arabia’s Ras Al-Khair.


According to Saudi Aramco, when fully operational in 2022, this integrated maritime yard for construction and repair of vessels and offshore drilling platforms will be one of the largest full-service maritime facilities. It will have the capacity to build more than 11 fixed offshore platforms and four drilling rigs per year.


“This new joint venture localises essential links for Saudi Aramco’s supply chain related to offshore drilling and shipping activities, which will lead to optimised cost, reduced response times and improved agility for Saudi Aramco and its affiliates,” Saudi Aramco said on the 29th December.


The nearly 12 million square-metre facility will be the largest in the region in terms of production capacity and scale.


The yard will have the capacity to build more than 11 fixed offshore platforms and four drilling rigs per year.


Lamprell will be the technical partner in two zones focusing on construction of jack-up drilling rigs as well as maintenance, repair and overhaul (“MRO”) services for jack-up drilling rigs and commercial vessels, with HHI taking responsibility for the two zones focusing on the construction and MRO services for offshore support vessels and the construction of commercial vessels.


The yard is expected to be partially operational by 2019 with full functionality reached by 2022.


Worth noting, Saudi Aramco has committed to an offtake agreement for construction of 20 offshore jack-up drilling rigs over a ten-year period as well as provision of MRO services for jack-up drilling rigs.


The offtake agreement allows Saudi Aramco to nominate its newly-formed Saudi drilling joint venture between Saudi Aramco and Rowan as the offtaker. Until the maritime yard is operational, JVCo is expected to subcontract some of this work, with significant component parts of the first two jack- up drilling rigs expected to be subcontracted to Lamprell’s yards in the UAE in 2018, Lamprell recently said.


CEO named too

As part of the official joint venture launch on Friday, Fathi Al-Saleem was named as the company’s CEO. Mr Al-Saleem has more than 23 years’ experience at Saudi Aramco and led the feasibility and commercial development stages of International Maritime Industries, Saudi Aramco said.


He said: “International Maritime Industries is positioned to be a global competitor and a regional hub for maritime products and services. Through our combination of technology, integrated facilities and supply chain efficiencies, we are redefining what it means to partner with customers for maritime advancement.”


According to available information, the project, named King Salman International Complex for Maritime Industries and Services will contribute about US$17 billion to the Kingdom’s GDP and will create more than 80,000 direct and indirect jobs by 2030.