The National Shipping Company of Saudi Arabia (Bahri) has signed a joint development agreement (JDA) with Saudi Arabian Oil Company (Saudi Aramco), Maritime Offshore Limited, a subsidiary of UAE-based oil rig constructor Lamprell, and South Korean shipbuilder Hyundai Heavy Industries on establishment of a maritime yard at Ras Al Khair in eastern Saudi Arabia.
The JDA represents the next phase of development between the partners after signing the Memorandum of Understanding (MoU) in January.
Following preliminary due diligence and feasibility studies, the next step for the partners will be to assess the operational, financial, personnel and legal aspects of the project in detail with a view to making a final investment decision in due course.
In line with the JDA, the costs associated with the workstreams covered by the agreement will be shared by the parties.
The intended maritime yard is aimed at providing engineering, manufacturing and repair services for offshore rigs, commercial vessels and offshore service vessels.
The outcome of the agreement to engage in the potential joint venture partnership will be determined upon finalisation of all activities and required due diligence, as well as all necessary corporate approvals.
The JDA terminates on the earlier of the effective date of the shareholders agreement or one year after the signing date.