Saudi Aramco signs JV for shipyard complex

Saudi Aramco announced on Tuesday that it has signed its first major contract in the planned construction of King Salman International Complex for Maritime Industries and Services at Ras Al-Khair, Saudi Arabia.

Under the terms of the contract, a consortium comprising Saudi Archirodon Company and Huta Hegerfeld will conduct dredging and reclamation for approximately 37 million cubic metres of fill, in addition to making ground improvements and constructing new quay walls, wharves and rock revetments to protect the shipyard complex.

“The Complex is in line with the Kingdom’s economic diversification objectives, it will position the Kingdom as a strategic logistics hub and will create vast job opportunities,” said Ahmed Al Sa’adi, Saudi Aramco’s senior vice-president for technical services.

Inaugurated in November 2016, the shipyard complex represents another step in Saudi Arabia’s drive to diversify its oil-dependent economy and develop its local content as outlined by Saudi Vision 2030. The shipyard is the largest of its kind in the region and, when completed, will expand Saudi Arabia’s local capacity for vessel and rig building, maintenance, repair and overhaul services.

Saudi Vision 2030 aims to transform Saudi Arabia’s economy and reduce the country’s dependence on oil.  As part of the plan, Saudi Arabia has proposed an initial public offering (IPO) for shares representing about 5% of NOC Saudi Aramco. The IPO has caused an international stir, with several stock exchanges vying to host what has been billed as the world’s largest such listing.