Saudi Aramco breaks ground on two offshore fabrication yards

Saudi Arabian Oil Co. (Aramco) is establishing two offshore fabrication yards aimed at delivering a more than 200% increase in the Kingdom of Saudi Arabia’s offshore fabrication capacity.

The new yards, being constructed in Ras Al Khair in collaboration with National Petroleum Construction Co. (NPCC) and McDermott International, are expected to fabricate and assemble offshore platforms, jackets, and structures for subsea pipelines intended to serve the Kingdom, the Gulf Cooperation Council, and broader markets, the company said in a release Oct. 17.

Start-up is planned for third-quarter 2023, with the initial combined production capacity estimated at 70,000 tonnes/year (tpy), increasing the Kingdom’s total offshore fabrication capacity to 100,000 tpy from 30,000 tpy. When fully operational, the yards are expected to create up to 7,000 direct and indirect jobs, with a target Saudization rate of 70%.

The offshore fabrication yards are expected to take advantage of advanced infrastructure at Ras Al Khair, including Ras Al Khair Port and the King Salman International Complex for Maritime Industries and Services.