The National Shipping Co. of Saudi Arabia (Bahri) on Tuesday signed a joint development agreement (JDA) with Saudi Aramco, Hyundai Heavy Industries Co. (HHI) and Dubai-based Lamprell Energy Ltd. on building a shipyard at Ras Al-Khair.
Under the JDA, the partners intend to assess the project’s operational, financial, personnel and legal aspects prior to taking a final investment decision, Bahri added in a statement to Tadawul.
The JDA represents the next phase of development between the partners after they signed the Memorandum of Understanding (MoU) in January, the oil shipper said.
Bahri added that the costs associated with the work streams covered by the JDA will be shared by the parties and that the JDA will terminate on the effective date of an agreement between the companies or within one year, whichever comes earlier.
The new shipyard will provide engineering, manufacturing and repair services for offshore rigs, platforms, commercial vessels and offshore service vessels.
In August 2013, an MoU was signed by the shipping firm, Saudi Aramco and Singapore’s Sembcorp Marine to conduct a feasibility study for the maritime yard project in the Kingdom.
On January 26, the three companies had inked a MoU to develop a shipyard in Saudi Arabia.
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