Saudi Aramco and its international partners are establishing two offshore fabrication yards that will increase Saudi Arabia’s offshore fabrication capacity by over 200 per cent.

The new yards, being constructed in Ras Al Khair in collaboration with National Petroleum Construction Company (NPCC) and McDermott International, will fabricate and assemble offshore platforms, jackets and structures for subsea pipelines.

Establishing the yards at Ras Al Khair also aims to support the localisation of the maritime industry, and supplement the nearby King Salman International Complex for Maritime Industries and Services.

The facilities are expected to start operations in Q3 2023, with an initial combined production capacity estimated at roughly 70,000 metric tons (MT) per year. This will increase the Kingdom’s total annual 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 Saudisation rate of 70 per cent.

According to Ahmad Al-Sa’adi, Aramco Senior Vice-President of Technical Services: "We believe the creation of these two yards represents a significant addition to infrastructure development for the maritime industry. They are expected to harness latest technologies, support localisation 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."

Abdulkarim Al Ghamdi, Aramco Vice-President of Project Management, said: "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."