State energy firm Saudi Aramco said it signed its first major contract for the planned US$5.2 billion King Salman International Complex for Maritime Industries and Services meant to help the country diversify from an oil-dependent economy.
It awarded a contract to a consortium of Saudi Archirodon Company Ltd and Huta Hegerfeld AG Saudia Company for dredging, reclamation and marine structures at the Ras Al-Khair complex. Aramco did not disclose the value of the deal. Execution of the initial phase of the contract is expected to finish by 2020.
At the end of May, Aramco signed a joint venture agreement with three firms (National Shipping Co of Saudi Arabia (Bahri), rig-builder Lamprell and South Korea's Hyundai Heavy Industries Co) to build and operate a maritime yard on the kingdom's east coast.
The maritime project which will provide vessel and rig build, maintenance, repair and overhaul services, complements the growth of the Saudi energy industry and helps to meet the development and diversification objectives outlined by Saudi Vision 2030, the energy giant said.
Under the terms of the new contract, the consortium will construct 4,500 linear meters of concrete quay walls and wharves, in addition to 12,000 linear meters of rock revetments and breakwaters to protect the integrity of the complex, Saudi Aramco said.
The contractors will conduct dredging and reclamation of approximately 37 million cubic meters of fill, in addition to ground improvement over an area of 7.4 million square meters.
“It is an important milestone for King Salman International Complex for Maritime Industries and Services, the largest of its kind in the region,” said Ahmed Al-Sa’adi, Saudi Aramco’s senior vice president for Technical Services. “The Complex is in line with the Kingdom’s economic diversification objectives, it will position the Kingdom as a strategic logistics hub and will create vast job opportunities.”
This part of the contract will prepare the project’s land for subsequent construction of a dry dock and ship building and maintenance facilities.