A joint venture which was set up to develop a major maritime yard in Saudi Arabia is up and running.
International Maritime Industries (IMI) comprises rig builders Lamprell and Hyundai Heavy Industries and Saudi Aramco and the National Shipping Company of Saudi Arabia.
Construction is under way at the Ras Al Khair site in eastern Saudi Arabia, with dredging and associated activities in progress.
Progress has been made on creating the management organisation, the internal governance structure and a detailed business plan.
Furthermore, each partner has made its first financial contribution. Lamprell’s first tranche amounted to $20 million, which was invested in 2017 and will be used to pay for initial start-up costs, including staff hire and long lead item procurement.
Lamprell’s anticipated total equity contribution over the construction period is up to $140 million.
Lamprell chief executive Christopher McDonald said: “Lamprell has been working closely with its partners on the establishment of the IMI business over the past few months and we are very pleased to see such tangible progress towards the operational phase, now that the conditions under the shareholders’ agreement have been completed.
“We are proud to be part of this major project as IMI has the capability of becoming a leading regional and global service provider to the rig and vessel markets.
“A very welcome progress is also the selction of our new LJ43 jackup rig designed with GustoMSC for the rigs under the offtake agreement, this will further strengthen Lamprell’s position in our traditional market.”
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