Hyundai Heavy Industries (HHI) and Lamprell Energy have taken over from lapsed partner Sembcorp Marine in a tie-up with Bahri (National Shipping Company of Saudi Arabia) and oil major Saudi Aramco to set up a new shipyard in the Middle East.

The previous agreement, an Memorandum of Understanding (MoU) incorporating the two Saudi partners and Singapore’s Sembcorp Marine, expired in October without any of the three companies committing financially to the project.

South Korean shipbuilder HHI and UAE company Lamprell Energy, a subsidiary of Lamprell Group, a leading provider of fabrication and engineering services for the offshore oil and gas industry, have now stepped in to replace Sembcorp, and a new MoU has been signed to continue discussions regarding the project.

Lamprell says the intended Maritime Complex will provide engineering, manufacturing and repair services for offshore rigs, commercial vessels and offshore supply vessels.

The new MoU is valid until an investment decision is made or terminated within 1 year from its effective date.