Saudi Aramco has announced that it has signed a joint venture agreement to build a shipyard on the kingdom's east coast.
A shareholder agreement has been inked with National Shipping Co of Saudi Arabia (Bahri), a state-controlled firm which ships oil for Aramco, Lamprell, a UAE-based engineering firm, and South Korea's Hyundai Heavy Industries Co.
The deal is part of the government's drive to diversify the economy beyond oil and will be the anchor project within the King Salman International Complex for Maritime Industries and Services located in Ras Al-Khair, near the Jubail Industrial City.
No financial details for the venture were given but it was previously reported that the project would cost more than SR20 billion ($5.3 billion).
Saudi Aramco said in a statement that major production at the yard is expected to start in 2019 with the facility reaching full capacity by 2022.
It added that the integrated maritime yard will be the largest in the region in terms of production capacity and scale, providing an "unprecedented mix of products and services in the region".
The new facility will have the capacity to manufacture four offshore rigs, over 40 vessels including 3 very large crude carrier and service over 260 maritime products annually.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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