Saudi Aramco inks JDA for maritime yard project
Saudi Aramco has signed a joint development agreement with Bahri, Lamprell, and Hyundai Heavy Industries related to the development of a maritime yard
Saudi Aramco has inked a joint development agreement (JDA) for the development of a maritime yard that will be used to manufacture and support offshore rigs and vessels.
The kingdom-based energy giant signed the agreement with three potential partners: the National Shipping Company of Saudi Arabia (Bahri), Lamprell, and Hyundai Heavy Industries (HHI).
Once complete, the maritime yard will provide engineering, manufacturing, and repair services for Saudi Aramco’s offshore rigs, commercial vessels, and offshore support vessels.
The JDA represents the next phase of development between the four stakeholders, all of which signed a memorandum of understanding (MoU) in January 2016.
The partners have also begun preliminary due diligence and feasibility studies connected to various aspects of the project, and work that is ongoing.
Under the terms of the JDA, the companies will undergo development activities related to financing, construction, operation, and ownership of the maritime yard. They will also enter into negotiations over the final investment decision.
In a statement issued to the press, Saudi Aramco said: “Saudi Aramco and the potential partners look forward to leveraging their knowhow, combined with current and future business needs, to actively pursue such an investment and promote economic development in the kingdom.
“In line with Saudi Vision 2030, this project aims to localise world-class manufacturing and services to support the growing national and international portfolio.”
The outcome of the agreement to engage in the potential joint venture partnership will be determined upon finalisation of all development activities and agreements, after which all participating parties will be in a position to make further announcements, according to Saudi Aramco.