Saudi shipyard International Maritime Industries (IMI) has inked a long-term deal with JSA Loadmaster that will increase local content in rig fabrication
The agreement between IMI and JSA Loadmaster, a joint venture between American companies Jackup Structures Alliance and Loadmaster Industries, is expected to contribute around US$200M to the Saudi economy over the next eight years. JSA Loadmaster will produce rig rack and chord, as well as derricks and other engineered structural products in Saudi Arabia.
Through the deal, IMI will source products for itself and its clients locally for rig manufacturing, reducing the cost of importing products from abroad. As part of the agreement, IMI will guarantee the ordering of rack and chord for four rigs, with an extension option of an additional two rigs.
The signing marks the establishment of IMI’s first long-term agreement with a supplier and a significant milestone in the company’s efforts to localise its supply chain. The partnership will also provide IMI with the opportunity to learn and align with industry best practices and further improve its rig services, building on its competitive overall market position.
Located at Ras Al-Khair on Saudi Arabia’s eastern seaboard, IMI is a joint venture between Aramco, Lamprell, Bahri and Hyundai Heavy Industries.
The long-term agreement was signed by IMI president and chief executive Fathi K Al Saleem and JSA Loadmaster Saudi Arabia and Jackup Structures Alliance president and CEO Jay Fogal during a ceremony at Dhahran, Saudi Arabia. It was also attended by executives from IMI, JSA Loadmaster, Saudi Aramco and ARO Drilling.
Mr Al Saleem said “As part of IMI’s localisation strategy, the agreement lays the foundation for the establishment of a local, cost-competitive manufacturing operation where all manufacturing and delivery activities occur in the same place. It will also improve the efficiency, agility, and logistics of the manufacturing process overall; and create employment opportunities while adhering to the highest international standards of sustainability and environmental excellence.”
The agreement underpins Saudi Arabia’s Vision 2030 programme, which has a goal to increase local content in the oil and gas sector to 70% by 2025.
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