01 Jun Saudi Aramco in JV for $5.2 billion offshore support facility
Saudi Aramco has established a joint venture (JV) agreeemnt with a host of oil services companies for the development of a US$5.2 billion offshore support facility.
The Saudi oil giant confirmed it has signed agreements with small cap offshore rig firm Lamprell, along with the National Shipping Company of Saudi Arabia and Hyundai Heavy Industries.
The maritime shipping yard, located off the Eastern Coast of Saudi Arabia, will be the largest of its kind in the region, and will significantly strengthen the offshore oil and gas production industries.
Major production operations are set to begin in 2019 before the facility reaches full capacity in 2022, according to the official Saudi Press Agency.
London-listed Lamprell, based in the United Arab Emirates, said in a statement on the deal that the JV agreement gives it a “critical point of entry” into the Saudi Arabian energy market.
“Participation in the maritime yard secures access to one of a limited number of companies globally that we believe will be receiving orders for and building new jackup drilling rigs in the near-to-medium term,” said Lamprell Chief Executive Christopher McDonald.