Saudi Arabian oil company Saudi Aramco has officially launched the International Maritime Industries joint venture with its partners Hyundai Heavy Industries, Lamprell and the National Shipping Company of Saudi Arabia (Bahri).
The integrated maritime yard, which is expected to be partially running by 2019 and fully operational by 2022, is a US$5.2 billion project located at Ras Al-Khair on the kingdom's east coast.
Extending across an area of almost 12 million square metres, the integrated maritime yard will provide a focal point for Aramco's offshore drilling and shipping activities including maintenance requirements for offshore oil and gas drilling rigs, offshore support vessels and commercial vessels, including very large crude carriers (VLCCs).
It will have capacity to manufacture annually four offshore rigs, more than 40 vessels including three VLCCs, and to service more than 260 maritime products.
Chairman of the joint venture board Abdallah I. Al-Saadan said it already had orders for more than 20 rigs and 52 ships over the next decade.
The Saudi government will provide $3.5 billion to establish, prepare and construct the site and shared infrastructure.
The remaining $1.7 billion will be split, with about $1 billion in debt to be provided by the Saudi Industrial Development Fund and $700 million in equity.
Lamprell will own 20 per cent of the equity, requiring it to spend up to $140 million. Aramco will hold a 50.1 per cent stake, Bahri will have a 19.9 per cent interest, and HHI will have a 10 per cent stake.
