A view shows Maaden Aluminium in Ras Al Khair, Saudi Arabia November 23, 2016. Picture taken November 23, 2016. REUTERS/Zuhair Al-Traifi
DHAHRAN, Saudi Arabia, Nov 27 (Reuters) – Saudi Arabia expects a huge ship repair andshipbuilding complex that its national oil company Saudi Aramco is developing at Ras al-Khair on the kingdom’s east coast to cost over 20 billion riyals ($5.33 billion), energy minister Khalid al-Falih said on Sunday.
“Construction will start in 2018, production in 2022,” Falih who is also chairman of Aramco told reporters at the company’s headquarters in Dhahran.
The government will finance the infrastructure of the complex such as dredging and other work as it did with other cities Jubail and Yanbu that have become major industrial hubs.
Ras al-Khair is itself turning into a major mining hub where Ma’aden has built an aluminium complex and phosphate facilities.
The maritime complex is a joint venture between Saudi Aramco, Saudi Bahri, South Korea’s Hyundai Heavy Industries and Lamprell.
The project will help generate thousands of direct and indirect jobs, a key part of Saudi Arabia’s Vision 2030, an economic reform programme the government announced this year, in which Aramco is to play a big role in developing industrial projects as Saudi Arabia tries to diversify its economy beyond reliance on oil exports.
Falih said other partnerships will be forged such as with U.S. Mcdermott company which will make offshore platforms.
He was speaking to journalists to brief them on the inauguration by King Salman of oil and gas and industrial projects and a cultural centre. Those projects cost around 160 billion riyals, he said.
He said the Sadara joint venture between Aramco and Dow Chemical alone cost as much as 80 billion riyals.
Among the projects that Saudi Aramco has completed are the Khurais oilfield which has a production capacity of 1.2 million bpd, Shaybah whose production has reached 1 million bpd after recently completing an expansion and Manifa’s 900,000 bpd.
Aramco is working on expanding capacity at Khurais to 1.5 million bpd, seen on stream in 2018.
“The production capacity of oil projects that the King will inaugurate exceeds or is around 3 million barrels per day.”
Saudi Arabia’s maximum sustainable production capacity stands at 12.5 million bpd, Falih reiterated as the additional capacity was just replacements for mature oilfields. (Reporting by Reem Shamseddine, editing by David Evans)
(Bloomberg) — Ukraine’s fight against Russia’s invasion has entered a new phase, pitting homegrown drone technology against a 2,000 kilometer (1,200 mile) swathe of largely Soviet-era oil facilities. At least...
March 19 (Reuters) – Tanker company Euronav will exit Belgium’s blue-chip Bel-20 index after just two days of trading, as it no longer meets the membership conditions after its takeover by Compagnie Maritime...
MOSCOW, March 19 (Reuters) – The new head of Russia’s Navy was formally presented in his new role for the first time on Tuesday at a pomp-filled ceremony, the state RIA news agency reported,...
March 19, 2024
Total Views: 2487
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.