UAE-based Lamprell, a provider of fabrication, engineering and contracting services, has announced that construction work at its new joint venture maritime yard at Ras Al Khair in eastern Saudi Arabia is under way.

The joint venture company, International Maritime Industries Company (IMI) , is a partnership between Lamprell, Saudi Aramco, the National Shipping Company of Saudi Arabia and Hyundai Heavy Industries.

Lamprell said that IMI has completed the conditions of entering into an agreement with the proposed government lender, the Saudi Industrial Development Fund. This agreement, along with previously announced offtake agreements and the significant investment made by the Saudi government in the infrastructure of the yard, is "expected be a cornerstone for the success of the IMI yard", the statement said.

"The construction process at the site is under way with dredging and associated activities in progress," the statement said. The partners have made their first capital contribution to the project, with Lamprell investing $20 million last year. The company’s anticipated total equity contribution over the construction period is up to $140 million.

One of the offtake agreements provides for 20 jackup rigs to be ordered by ARO Drilling from the IMI yard over the next 10 years. Prior to the jackup rig construction zone of the maritime yard becoming operational, significant component parts of the first two rigs are expected to be subcontracted to Lamprell's UAE facilities. ARO Drilling and the IMI have recently selected the LJ43 rig design collaboratively developed by Lamprell and GustoMSC, a leading design and engineering company of mobile offshore units and associated equipment.

The company’s CEO, Christopher McDonald, said, "Lamprell has been working closely with its partners on the establishment of the IMI business over the past few months and we are very pleased to see such tangible progress towards the operational phase, now that the conditions under the shareholders' agreement have been completed.

“We are proud to be part of this major project as IMI has the capability of becoming a leading regional and global service provider to the rig and vessel markets. A very welcome progress is also the selection of our new LJ43 jackup rig designed with GustoMSC for the rigs under the offtake agreement; this will further strengthen Lamprell's position in our traditional market." – TradeArabia News Service