Cairo - Decypha: McDermott International, an American oilfield services and equipment provider, will build a fabrication yard at a shipbuilding complex planned by national oil giant Saudi Aramco in Saudi Arabia, according to Arabian Business.
As part of Saudi Arabia's drive to diversify its economy and create jobs in an era of cheap oil, the two companies signed a memorandum of understanding for the manufacturing investment in the complex, reported Reuters.
The complex will cost more than $5 billion to build and will be located at Ras Al Khair, according to Saudi officials. The kingdom wants to manufacture oil equipment locally rather than importing it.
Ras Al Khair’s development could eventually take business away from other maritime yards in the region, such as Dubai’s Jebel Ali. The US firm expects to move business gradually from Jebel Ali to Ras Al Khair by the mid-2020s.
Last year, Saudi Aramco signed a memorandum of understanding for construction of the complex with National Shipping Co of Saudi Arabia, a state-controlled firm which ships oil for Aramco, as well as a subsidiary of London-listed Lamprell, a United Arab Emirates-based engineering firm, and South Korea's Hyundai Heavy Industries.
By Decypha News Editorial Team
