Lamprell has announced an update on its strategy in Saudi Arabia and the development of its local presence in the kingdom
Lamprell's investment into Saudi Arabia is in line with the group's growth strategy where the primary focus has been the investment into the joint venture between Saudi Aramco, Bahri and Hyundai Heavy Industries to develop a major maritime yard in the Arabian Gulf, known as International Maritime Industries.
The company is also pursuing other opportunities to gain a stronger foothold in Saudi Arabia. Among other things, one objective is to qualify as a contractor to Saudi Aramco on their Long Term Agreement (LTA) programme.
The LTA programme is where contractors undertake offshore engineering, procurement, construction and installation projects in the oil and gas sector. A major component of all LTA projects is Saudi Aramco's In-Kingdom Total Value Add (IKTVA) programme, which is designed to encourage and increase local investment by the LTA contractors.
Lamprell is taking steps to achieve its IKTVA commitments by developing its in-Kingdom capabilities and by partnering with strong local businesses. It has formed Lamprell Saudi Arabia (LKSA), a Saudi limited liability company, which is a joint venture including Asyad Holdings as our local partner.
Christopher McDonald, CEO of Lamprell, said that the company aims to build new business in Saudi Arabia with the opportunities of investment in the International Maritime Industries yard and our LTA bid to Saudi Aramco.
“The region has some of the strongest fundamentals in the oil sector and has demonstrated resilient production throughout the market downturn with an exceptional growth strategy going forward. Much of Lamprell's effort over the past two years focused on building a presence in the region and we are pleased to see our strategy supported by local partners,” McDonald added.
