Lamprell enters next phase for establishment of maritime yard in Saudi Arabia
- Business & Finance
Lamprell, a provider of fabrication, engineering and contracting services to the energy industry, has signed a Joint Development Agreement (JDA) for establishing a maritime yard, at Ras Al Khair in eastern Saudi Arabia.
The maritime complex will provide engineering, manufacturing and repair services for offshore rigs, commercial vessels and offshore service vessels.
Following a Memorandum of Understanding (MOU) inked in January 2016, Maritime Offshore, Lamprell’s subsidiary, and the Saudi Arabian Oil Company (Saudi Aramco, the national oil company of the Kingdom of Saudi Arabia), the National Shipping Company of Saudi Arabia (Bahri) and Hyundai Heavy Industries signed the JDA in connection with the potential partnership collaboration for establishing the yard.
Lamprell explained on Wednesday that the JDA represents the next phase of development between the partners after signing the MoU. Pursuant to the MOU, the partners have been working closely to undertake preliminary due diligence and feasibility studies.
Lamprell said that good progress has been made in recent months and, with the signing of the JDA, the partners intend 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. The costs associated with the workstreams covered by the JDA will be shared by the parties according to the agreement, the company added.
The outcome of the agreement to engage in the potential joint venture partnership will be determined upon finalization of all activities and required due diligence, as well as all necessary corporate approvals, Lamprell noted.
“Execution of the JDA may or may not lead to the participation of Lamprell in this venture and negotiations will continue until completion of such process, at which time the company will be in a position to make a further announcement on its participation,” Lamprell concluded.