Saudi Arabia has taken two steps towards boosting its in-country rig building and high-end manufacturing capabilities in the sector.
Saudi Aramco, the Kingdom's oil super-major, Abu Dhabi-based engineering and rig building firm Lamprell, South Korea's Hyundai Heavy Industries and Saudi Arabia's national shipping company Bahri have signed a joint development agreement for a new yard, at Ras Al Khair in eastern Saudi Arabia, where a new port is being built.
The yard would be able to both build and service new rigs to provide engineering, manufacturing and repair services for offshore rigs, commercial vessels and offshore service vessels both within and outside Saudi Arabia.
Meanwhile, Saudi Aramco has signed an MOU with GE to build the Middle East and North Africa's first of its kind high-end forging and casting manufacturing facility - also at Ras All Khair - for use in building, maintenance, repair and overhaul or offshore platforms, jacksups, service vessels and commercial tankers.
This would involve some US$400 million joint investment, says GE, which also says the plant could be operational by 2020.
While a date has not been set for a financial investment decision, the move to set up a new yard would see Lamprell expanding from its core business in Abu Dhabi.
