Saudi Aramco, STX to build shipyard in Ras Al-Khair

2013-03-25

Saudi Arabian Oil Co. and STX Heavy Industries Co. of South Korea plan to build a $4 billion ship repair and fabrication yard in Ras Al-Khair, Eastern Province, MEED reported on its website, citing industry sources.

Aramco and STX Heavy plan to build a $4 billion ship repair and fabrication yard at Ras Al-Khair, about 60 km north of Jubail, industry sources were quoted as saying in media reports.

The oil firm’s plan to construct a shipyard will not only broaden its capabilities, but will also create jobs for local workers, MEED reported.

The report could not be independently confirmed as relevant officials were not available for comment.

MEED said STX has experience in the ship repair and offshore sectors, and should make an ideal partner for Saudi Aramco.

Aramco is working toward being a fully integrated company and this new development will give it additional capabilities in an area where it has traditionally had to look elsewhere for expertise, according to MEED.

“Building an in-kingdom facility that can cater to Aramco’s offshore oil and gas industry as well as carry out new builds and repairs on vessels is a logical move,” it added.

Offshore well development is ramping up considerably, with crude output from the Manifa oilfield expected to significantly boost Saudi Aramco’s overall production capacity.

Aramco CEO Khalid A. Al-Falih said recently during his keynote address to world energy leaders gathered in Houston for the IHS Cambridge Energy Research Associates Annual Conference, that the energy industry has experienced “sweeping new realities” that have created a renaissance in the petroleum industry.

He commended energy leaders for their role in ushering in this era of growth by remaining resilient in the face of regulatory and economic uncertainty.

Meanwhile, India has turned to Saudi Arabia and Oman for its crude purchases after New Delhi cut its oil imports from Iran by 21.8 percent as of the beginning of the year, reported local media.

According to two informed sources, India’s Mangalore Refinery and Petrochemicals (MRPL) bought crude oil from the Abu Safah oilfield for the first time, as well as from Oman, to lessen its dependence on Iranian oil.

Abu Safah is an offshore field of Arab medium crude that Bahrain shares with Saudi Arabia, while Saudi Aramco handles marketing through Ras Tanura.

Source: Saudi Gazette

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