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New Saudi Arabian Yard Collaborates on VLCC

Credit: IMI
IMI agreement signed in June

By The Maritime Executive 2019-09-17 19:24:40

Saudi Arabian shipyard International Maritime Industries (IMI) has received an order for a VLCC from Bahri. The deal includes licensing, technical services and training from Hyundai Heavy Industries (HHI) to facilitate IMI's aim to eventually build VLCCs independently, using a local supply chain.

The 319,000dwt vessel will be built in South Korea and is expected to be delivered in October 2021. 

IMI is a joint venture between Saudi Aramco, Lamprell, Bahri and Hyundai Heavy Industries.

IMI, located in The King Salman Complex for International Maritime Industries & Services at Ras Al-Khair, Saudi Arabia, aims to be the largest, full service maritime facility in MENA. When construction is complete, the annual capacity of the facility will be four newbuild offshore rigs and over 43 new build vessels, including VLCCs. The first phase of production operations is expected to commence toward the end of 2020 with the facility reaching its full production capacity by 2022. 

The new order follows an agreement by the three companies to pursue long-term business activities which was signed in June. 

However, news of the drone attacks on Saudi Aramco oil refineries this week has caused analysts in South Korea to predict a greater focus on LNG than oil, reports Yonhap news agency. The nation could therefore see increased ordering for LNG carriers, as demand for U.S. gas increases.