Saudi Aramco, Lamprell, the National Shipping Company of Saudi Arabia (Bahri) and Hyundai Heavy Industries have launched a new shipyard for the offshore sector at Ras Al Khair Industrial City in Saudi Arabia.
The shipyard is being opened in phases, and when fully operational in 2022, it will be one of the largest facilities of its kind in the region, according to a press release issued by the four maritime giants.
The shipyard, International Maritime Industries (IMI), will localise essential links for Saudi Aramco’s supply chain related to offshore drilling and shipping activities, while providing Bahri with access to world-class shipyard facilities for its growing VLCC fleet.
The nearly 12mn square-meter facility will build offshore oil and gas rigs, offshore support vessels and commercial vessels, including Very Large Crude Carriers (VLCCs).
The yard has an annual capacity to manufacture four offshore rigs, over 40 vessels including three VLCCs, and service over 260 maritime products.
IMI already has orders for over 20 rigs and 52 ship over the next decade, according to the release.
“By meeting Saudi Aramco’s offshore production and transport needs, International Maritime Industries will serve our strategic intent to become the world’s foremost integrated energy and chemicals company,” said Abdullah Al Saadan, chairman of the JV’s board of managers and Saudi Aramco’s senior vice president of finance, strategy and development.
“Its combination of technology, supply chain efficiencies and lifecycle partnership will create a world-class company that offers customers a keen competitive advantage,” he added.
Fathi Al Saleem has been appointed CEO of IMI. With more than 23 years’ experience at Saudi Aramco, Saleem led the feasibility and commercial development stages of IMI.
Initial production and service operations are expected to commence in 2019, with the facility reaching its full operational capacity by 2022.
At a second location nearby, Saudi Aramco will develop a casting and forging facility over an area of 300,000 square meters. The new facility will serve the maritime industry and the manufacturing of equipment related to the oil and gas supply chain.
The developments are part of Saudi Aramco's ongoing commitment to establishing a world-class supply chain and services ecosystem in Saudi Arabia.
The strategy is part of the In-Kingdom Total Value Add (IKTVA) Program, launched by Saudi Aramco two years ago to double local content by 2021.