UAE-based offshore contractor Lamprell has confirmed in a statement that construction work has begun on a joint venture (JV) to build a multi-billion dollar shipyard on Saudi Arabia’s Eastern coast.
State-run oil company Saudi Aramco will lead the JV, called International Maritime Industries (IMI), which also includes Lamprell, National Shipping Company of Saudi Arabia (Bahri) and South Korea’s Hyundai Heavy Industries.
Construction activity has begun at the Ras al-Khair industrial complex after the Saudi Industrial Development Fund (SIDF) agreed to provide US$1 billion in financing.
The overall project has previously been said to cost over $5.3 billion by an Aramco executive.
Lamprell said in its statement that it anticipates to contribute up to $140 million in equity during the construction period.
The state-of-the-art shipyard will provide one of the world’s largest maritime integrated service complexes, when it is completed in 2022.
It will have an annual capacity to manufacture four offshore rigs and over 40 vessels, including three Very Large Crude Carriers (VLCCs), and service over 260 maritime products.