Lamprell subsidiary inks Saudi joint-development agreement

Lamprell subsidiary Maritime Offshore has entered a joint-development agreement in connection with a potential partnership collaboration to establish a Maritime Yard in Saudi Arabia.

The agreement, which related to the potential construction of a Maritime Yard at Ras Al Khair in eastern Saudi Arabia, was signed with Saudi Arabian Oil Company (Saudi Aramco), National Shipping Company of Saudi Arabia (Bahri) and Hyundai Heavy Industries.

The fabrication, engineering and contracting services provider to the energy industry said the agreement represented the next phase of development between the partners after a memorandum of understanding was inked in January.

Lamprell, whose shares were up almost 3% following the news, said the partners had worked closely to undertake preliminary due diligence and feasibility studies.

"Good progress has been made in recent months and, with the signing of the JDA, the partners intend to assess the operational, financial, personnel and legal aspects of the project in detail with a view to making a Final Investment Decision in due course," it said.

Costs associated with the workstreams covered by the JDA would be shared by the parties according to the agreement.