AUGUST 20, 2013 — Singapore's Sembcorp Marine has signed a Memorandum of Understanding (MOU) with Saudi Aramco and the National Shipping Company of Saudi Arabia (Bahri), one of the largest shipping companies in the world, with the objective of preparing  feasibility assessment aimed at the development of a world-class shipyard in the Kingdom of Saudi Arabia.

The proposed yard will provide engineering, manufacturing and repair services related to rigs, platforms, commercial vessels and offshore service vessels.

Bahri says that, under the MOU, the three parties will prepare a detailed assessment that will include examination of all activities from construction operations and commercial planning to supply chain development required for the three equity partners to make a final investment decision. It says that the MOU will remain valid until an investment decision is made or terminated within 15 months from its effective date.

Saudi Aramco and Sembcorp Marine Ltd have previously completed preliminary studies leading to this detailed assessment phase, in which Bahri is now participating as a new partner. Within Bahri, the initiative will be managed by a Gas & Offshore Business Unit that is currently being established. This unit will also explore other investment opportunities in the offshore services industry in pursuit of the company's strategy of growing and diversifying its business activities.