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Aramco to build two offshore fabrication yards in Ras Al Khair

REUTERS/Hamad I Mohammed
Located at S-Oil’s existing site in Ulsan, the new plant will have a capacity to produce up to 3.2 million tons of petrochemicals annually

Saudi Arabian Oil Company will establish two offshore fabrication yards with international partners – National Petroleum Construction Company (NPCC) and McDermott International – to boost Saudi Arabia’s offshore fabrication capacity.

The new yards, constructed in Ras Al Khair, are expected to fabricate and assemble offshore platforms, jackets and structures for subsea pipelines, the company said in a statement.

The yards are expected to be operational in the third quarter of 2023, with the initial combined production capacity estimated at 70,000 metric tons (MT) per year.

Therefore, the kingdom’s total offshore fabrication capacity will rise from 30,000 MT to 100,000 MT annually. 

The yards will likely create up to 7,000 direct and indirect jobs, with a target Saudisation rate of 70 percent after being fully operational.

Abdulkarim Al Ghamdi, Aramco vice president of project management, said that the yards would bring new technologies and digital solutions to in-kingdom fabrication, accelerating project delivery schedules and reinforcing the local supply chain.