Saudi Aramco to establish 2 offshore fabrication yards in Ras Al Khair

By Shilpa Annie Joseph, Desk Reporter
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Saudi Aramco
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Saudi Arabian Oil Company (Aramco) is establishing two offshore fabrication yards that aim to deliver a more than 200 percent increase in the Kingdom’s offshore fabrication capacity.

The company said in a statement that “the new yards are being constructed in Ras Al Khair in collaboration with the International partners, National Petroleum Construction Company (NPCC) and McDermott International.”

They are expected to fabricate and assemble offshore platforms, jackets, and structures for subsea pipelines, the company noted.

According to the statement, “Start-up of the facilities is planned for the third quarter of 2023, with the initial combined production capacity estimated at roughly 70,000 metric tons (MT) per year, increasing the Kingdom’s total offshore fabrication capacity from 30,000 MT to 100,000 MT annually.”

When fully operational, the yards are expected to create up to 7,000 direct and indirect jobs, with a target Saudization rate of 70 percent. Designed to international standards and harnessing the latest technologies, the yards are intended to serve the Kingdom, GCC, and broader markets.

Mr. Ahmad A. Al-Sa’adi, Aramco Senior Vice President of Technical Services, said that, “We believe the creation of these two yards represents a significant addition to infrastructure development for the maritime industry. They are expected to harness the latest technologies, support localization efforts, improve the supply chain and contribute to the development of Saudi talent. In addition, they aim to contribute to economic diversification in the Kingdom.”

“NPCC and McDermott are long-term partners of Aramco and the establishment of these yards is another example of our collaborations and joint efforts to deliver more advanced offshore facilities. The yards are intended to bring cutting-edge technologies and digital solutions to in-Kingdom fabrication. We also expect them to accelerate project delivery schedules and reinforce the local supply chain,” commented Mr. Abdulkarim A. Al Ghamdi, Vice President of Project Management at Aramco.

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