Saudi Aramco launches maritime joint venture
State oil giant Saudi Aramco has joined hands with UAE-based Lamprell, the National Shipping Company of Saudi Arabia (Bahri) and Korea’s Hyundai Heavy Industries to launch their International Maritime Industries (IMI) joint venture.
The new company is the anchor project within the King Salman International Complex for Maritime Industries and Services at Ras Al Khair. When fully operational in 2022, this integrated maritime yard will be one of the largest full-service maritime facility, said a statement from Saudi Aramco.
This new joint venture localises essential links for Saudi Aramcos supply chain related to offshore drilling and shipping activities, which will lead to optimised cost, reduced response times and improved agility for Saudi Aramco and its affiliates.
The nearly 12 million sqm facility will be the largest in the region in terms of production capacity and scale offering an unprecedented mix of products and services. This scope enables Saudi Aramco and its supply chain partners to meet their manufacturing and MRO requirements for offshore oil and gas rigs, offshore support vessels, and commercial vessels, including very large crude carriers (VLCC). The yard has an annual capacity to manufacture four offshore rigs, over 40 vessels including three VLCCs, and service over 260 maritime products.
Abdullah I. Al Saadan, chairman of the JVs board of managers and Saudi Aramcos senior VP of finance, strategy and development, commented: “By meeting Saudi Aramcos offshore production and transport needs, International Maritime Industries will serve our strategic intent to become the worlds 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. What is unique about IMI is the powerful synergy of manufacturing and operational excellence delivered by four established global and regional entities in the energy and maritime industries.”
International Maritime Industries already has orders for more than 20 rigs and 52 ships over the next decade, demonstrating the trust of the JV partners in the Companys ability to produce quality, bespoke ships and rigs in line with national and global environmental requirements. This enables building an integrated supply chain that is localised and highly responsive.”
The formal appointment of International Maritime Industries senior executives was also announced yesterday (December 29), including Fathi K. Al-Saleem as CEO.
Al-Saleem has more than 23 years experience at Saudi Aramco and led the feasibility and commercial development stages of International Maritime Industries. He has managed high performing teams in new business development, corporate planning and engineering services. During his career, he has led the corporate portfolio analysis and decision support function responsible for corporate decision support, enterprise risk management, and portfolio analysis. Prior to that, Al-Saleem managed the capital planning and evaluation for upstream and downstream investments.
Al-Saleem commented: “International Maritime Industries is positioned to be a global competitor and a regional hub for maritime products and services. Through our combination of technology, integrated facilities and supply chain efficiencies, we are redefining what it means to partner with customers for maritime advancement.”
Initial production and service operations are expected to commence in 2019, with the facility reaching its full operational capacity by 2022. This initiative will contribute towards localising expertise related to the maritime industry and job creation in the Kingdom.
