$ 4 bn ship repair yard planned in Ras Al-Khair

Saudi Aramco and STX Heavy Industries Co. of South Korea 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 yesterday.
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 field expected to significantly boost Saudi Aramco’s overall production capacity.
In a recent speech, Saudi Aramco CEO Khalid A. Al-Falih said 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.
The CEO’s remarks came during his keynote address to world energy leaders gathered in Houston for the IHS Cambridge Energy Research Associates Annual Conference.
The event drew more than 2,500 senior executives, officials and other delegates from more than 50 countries for interactive discussions and presentations on the energy future.