Saudi Aramco, Partners Launch Offshore Focused Shipyard at Ras Al-Khair Industrial City

Saudi Aramco and partners announced a joint venture to build a shipyard on the kingdom’s east coast, part of the Saudi Arabian government’s drive to diversify the economy beyond oil.

Along with UAE-based Lamprell, the National Shipping Company of Saudi Arabia (Bahri), and South Korea-based Hyundai Heavy Industries, Saudi Aramco says the shipyard will be focused on the offshore sector at Ras Al-Khair Industrial City in Saudi Arabia.

Abdullah Aldubaikhi, Bahri’s new Chief Executive Officer

Abdullah Aldubaikhi, Bahri’s new Chief Executive Officer

Aramco, which signed the joint venture agreement in May, has previously said the project will cost more than 20 billion riyals ($5.3 billion).

The new joint venture is called International Maritime Industries (IMI), and will be headed up by Fathi K. Al Saleem as chief executive officer. It is expected to be fully operational in 2022 as one of the largest full-service maritime facilities in the region, with a 12 million square-meter facility and an annual capacity to manufacture four offshore rigs, over 40 vessels including three Very Large Crude Carriers (VLCCs), and service over 260 maritime products, according to reports.

IMI reportedly already has orders for over 20 rigs and 52 ships over the next decade.

Bahri recently appointed Abdullah Aldubaikhi as the company’s new Chief Executive Officer, and he will be taking over the reins from the start of this year.