The companies have agreed to form a new joint venture company with Saudi Aramco holding 50.1%, Lamprell 20%, Bahri 19.9% and HHI 10%.
The yard is expected to cost $5.2bn to build with the Saudi government funding $3.5bn and the joint venture the remaining $1.7bn.
The 4.3 sq km yard at Ras Al-Khair will comprise four main production zones and is scheduled for partial operation in 2019 and full operation in 2022. HHI will be the technical partner for Zones C and D for the construction and repair of offshore support vessels and the building of commercial vessels. Lamprell will be the technical partner for zones A and D for the repair of jack-up rigs and commercial vessels and the building of jack-up rigs.
Both Saudi Aramco and Bahri will provide a guaranteed baseload to the shipyard through an offtake agreement.
Bahri will agree to purchase not less than 75% of its vessel requirements over the next 10 years for 52 newbuilds including VLCCs.
Meanwhile Saudi Aramco will agree to acquire 20 jack-up rig newbuilds, equate to two rigs per year for 10 years.
“We are excited to announce this transformational transaction which will not only make Lamprell a participant in potentially one of the largest yards in the Arabian Gulf but also provide access to the most important market in the industry and one of the largest players in the sector,” said Lamprell ceo Christopher MacDonald.
“The transaction will enable growth in scale beyond Lamprell’s capability as a stand-alone entity and will allow the Company to strengthen its competitive position through efficiencies, diversification and broader reach.”
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