UAE based rig constructor Lamprell has agreed a joint venture with Saudi Aramco and Hyundai Heavy Industries to invest in a much anticipated $5.2billion maritime ‘super-yard’ in the Kingdom.
The deal will see the fabricator supply 20 jack up rigs to the Saudi state run oil company over a period of ten years.
The joint venture, which also has tie ups with the National Shipping Company of Saudi Arabia, is to establish, develop and operate the yard for the construction,maintenance and repair of offshore drilling rigs and vessels.
The completed facility will form part of “The King Salman International Complex for Maritime Industries and Services” in the Kingdom’s Eastern province.
When fully operational in 2022, the yard is expected to be the largest in the Arabian Gulf in terms of production capacity and scale.
It will cover 4.3 square kilometres along the coast of Ras Al-Khair.
Lamprell will be the technical partner the zones that will provide maintenance, repair and overhaul services for jackup drilling rigs
and commercial vessels, and the construction of jackup drilling rigs.
The National Shipping Company of Saudi Arabia has also agreed to purchase a minimum of 52 commercial vessels, constructed at the site.
Hyundai will be technical partner for the zones that will construct and undertake MRO services for offshore support vessels and that will construct commercial vessels.
Christopher McDonald, chief executive of Lamprell, described the firm’s involvement in the deal as “transformational”.
“The transaction will enable growth in scale beyond Lamprell’s capability as a stand-alone entity and will allow the company to
strengthen its competitive position through efficiencies, diversification and broader reach.
“Participation in the Maritime Yard also secures access to one of a limited number of companies globally that we believe will be receiving orders for and building new jackup drilling rigs in the near-to-medium term with significant component parts of the first two jackup drilling rigs expected to be subcontracted to Lamprell.”