Ras Al Khair: Saudi Aramco signs Dredging and Reclamation Contract

By Davis Thattil | Nov 02, 2017
Saudi Aramco recently signed its first major contract in the planned construction of King Salman International Complex for Maritime Industries and Services at Ras Al-Khair. Under the terms of the contract, a consortium comprising Saudi Archirodon Company and Huta Hegerfeld will conduct dredging and reclamation for approximately 37 million cubic meters of fill, in addition to making ground improvements and constructing new quay walls, wharves and rock revetments to protect the shipyard complex.

The scope of the contract will include the construction of 4,500 linear meters of concrete quay walls and wharves, as well as 12,000 linear meters of rock revetments and breakwaters to protect the integrity of the complex. Execution of the initial phase of the contract will be concluded by 2020, which will get ready the project’s land for subsequent construction of a dry dock and ship building and maintenance facilities.

The complex, which was inaugurated in November 2016, is a commercial maritime project which is set to make Saudi Arabia a strategic maritime logistics hub. It is expected to support the growth of the Saudi energy industry and help to meet the development and diversification objectives outlined by Saudi Vision 2030. Upon completion, the facility will provide vessel and rig building, maintenance, repair and overhaul services.

The project, upon completion, will create 80,000 job opportunities and allow Saudi Arabia to reduce its imports by $12 billion while increasing gross domestic product by $17 billion.

In May 2017 Saudi Aramco signed a shareholder agreement with Lamprell plc (“Lamprell”), the National Shipping Company of Saudi Arabia (“Bahri”), and Hyundai Heavy Industries Co. Ltd (“HHI”) to enter into a joint venture (“JV”) partnership with respect to the establishment, development and operation of the world-class maritime yard, King Salman International Complex for Maritime Industries and Services at Ras Al-Khair.

Saudi Aramco will own 50.1 percent, investing as much as $351 million.
Bahri will invest up to $139 million for a 19.9 percent stake and Hyundai up to $70 million for 10 percent. The Saudi Industrial Development Fund (SIDF) has agreed to provide a debt facility worth about $1 billion.

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 and enabling Saudi Aramco and its supply chain partners to meet their manufacturing, maintenance, repair and overhaul requirements for offshore oil and gas rigs, offshore support vessels, and commercial vessels, including Very Large Crude Carriers (VLCC). The maritime complex will comprise a separate shipyard facility for large shipbuilding, large ship repair, offshore rigs fabrication, and offshore support vessel repair. It will also include seven fully-equipped dry docks, two basins and five piers, a ship lift system, workshops, warehouses, utility services areas, as well as office buildings, living quarters, and recreational facilities for more than 10,000 workers. The new facility shall have the capacity to manufacture 4 offshore rigs, over 40 vessels including 3 VLCCs, and service over 260 maritime products annually. Major production operations are expected to commence in 2019 with the facility reaching its full production capacity by 2022. This initiative will also contribute towards localizing expertise related to the maritime industry and job creation in the Kingdom.

Send your Comments


      Print                     Subscribe

Follow Us


More ad in this place