Aramco to set up mar­itime com­plex with lo­cal and in­ter­na­tional part­ners

The National - News - - BUSINESS - MAH­MOUD KASSEM

Saudi Aramco, has set up In­ter­na­tional Mar­itime In­dus­tries (IMI), its joint ven­ture with Lam­prell, the Na­tional Ship­ping Com­pany and Hyundai Heavy In­dus­tries Com­pany, to build a multi-bil­lion dol­lar mar­itime yard in the king­dom, which it ex­pects will be fully op­er­a­tional in 2022.

The JV, which is the an­chor project within the King Sal­man In­ter­na­tional Com­plex for mar­itime in­dus­tries and ser­vices at Ras Al Khair, was of­fi­cially launched on Fri­day and will be headed by Fathi Al Saleem, Aramco said, adding that the ini­tial pro­duc­tion and ser­vice op­er­a­tions are ex­pected to start in 2019.

“In­ter­na­tional Mar­itime In­dus­tries is po­si­tioned to be a global com­peti­tor and a re­gional hub for mar­itime prod­ucts and ser­vices,” Mr Al Saleem said. “Through our com­bi­na­tion of tech­nol­ogy, in­te­grated fa­cil­i­ties and sup­ply chain ef­fi­ciency, we are re­defin­ing what it means to part­ner with cus­tomers for mar­itime ad­vance­ment.”

The 12-mil­lion-square-km fa­cil­ity will have the largest pro­duc­tion ca­pac­ity in the Ara­bian Gulf re­gion and will help Aramco and its part­ners re­duce costs, cut down re­sponse time and boost agility when it comes to off­shore drilling and ship­ping ac­tiv­i­ties.

The yard will have an­nual ca­pac­ity to build four off­shore rigs, more than 40 ves­sels in­clud­ing three very large crude car­ri­ers and it will be able to ser­vice over 260 mar­itime prod­ucts.

The JV is part of Saudi Ara­bia’s eco­nomic di­ver­si­fi­ca­tion plans as the king­dom, the re­gion’s big­gest econ­omy, seeks to ra­tio­nalise spend­ing, cre­ate jobs for lo­cal work­force and de­velop the al­ter­na­tive rev­enue lines to com­pen­sate for dwin­dling hy­dro­car­bon rev­enues. It is branch­ing out into new busi­nesses and has been busy seal­ing deals this year.

Aramco it­self has been lined up for part pri­vati­sa­tion and an IPO of about 5 per cent stake is ex­pected to yield US$100 bil­lion in pos­si­bly the big­gest-ever share sale glob­ally.

Last week, Aramco signed two agree­ments with the Royal Com­mis­sion for Jubail and Yanbu, a gov­ern­ment body that man­ages free zones in the coun­try, to set up two in­dus­trial projects at Ras Al Khair. In No­vem­ber, Aramco and Sabic signed an agree­ment to build one of the world’s largest oil-to-chem­i­cals fa­cil­i­ties val­ued at $20bn.

Aramco also plans to raise its spend­ing to $414bn over the next 10 years, in­clud­ing on in­fra­struc­ture and drilling. The new cap­i­tal ex­pen­di­ture tar­get re­vealed ear­lier in De­cem­ber is higher than $334bn an­nounced in 2017.

Aramco’s vice pres­i­dent for pro­cure­ment and sup­ply chain man­age­ment, Ab­du­laziz Al Ab­dulka­rim, in March said the com­pany’s in­vest­ment in a new en­ergy in­dus­trial city in Saudi Ara­bia is es­ti­mated at $4.4bn while its in­vest­ment in Ras Al Khair may reach 21.8bn Saudi riyals (US$5.81bn).

The chief ex­ec­u­tive of the JV, Mr Al Saleem has worked at Aramco for more than 23 years and led the fea­si­bil­ity and com­mer­cial de­vel­op­ment stages of IMI.

“By meet­ing Saudi Aramco’s off­shore pro­duc­tion and trans­port needs, In­ter­na­tional Mar­itime In­dus­tries will serve our strate­gic in­tent to be­come the world’s fore­most in­te­grated en­ergy and chem­i­cals com­pany,” said Ab­dul­lah Al Saadan, chair­man of the JV’s board of man­agers and Aramco’s se­nior vice pres­i­dent of fi­nance, strat­egy and de­vel­op­ment.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.