Saudi Aramco Launches Shipyard Joint Venture
Saudi Aramco and its partners Lamprell, the National Shipping Company of Saudi Arabia (Bahri) and Hyundai Heavy Industries have launched a shipyard focused on the offshore sector at Ras Al-Khair Industrial City in Saudi Arabia.
When fully operational in 2022, International Maritime Industries (IMI) will be one of the largest full-service maritime facilities in the region. Saudi Aramco sees the venture as localizing essential links for its supply chain related to offshore drilling and shipping activities. The nearly 12 million 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.
“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. Its combination of technology, supply chain efficiencies and lifecycle partnership will create a world-class company that offers customers a keen competitive advantage,” said Abdullah I. Al-Saadan, Chairman of the JV’s Board of Managers and Saudi Aramco’s Senior Vice President of Finance, Strategy& Development.
Fathi K. Al-Saleem as been appointed CEO of IMI. Al-Saleem has more than 23 years’ experience at Saudi Aramco and 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.