International Maritime Industries Signs Two "New Build Rig Orders" With ARO Drilling

DHAHRAN, Saudi Arabia, Jan. 19, 2020 /PRNewswire/ -- International Maritime Industries (IMI) announced today they had signed two "Rig Purchase Agreement's" (RPA's) with ARO; a world-class offshore drilling contractor that owns, operates, and manages a fleet of high-specification and premium jack-up rigs in Saudi Arabia, and a subsequent sub-contract agreement with long-term partners Lamprell Energy Ltd (LEL) to build two (2) Keppel LeTourneau Super 116E jack-up drilling rigs. The delivery of the first rig is expected in Q1 2022 and the second rig in Q2 2022.

"This award provides many benefits for IMI, including transfer of technical knowledge and IP from LEL to IMI and a mechanism to address the development plans required for IMI employees, so they acquire world class skills in rig building and planning that will ensure IMI is well equipped to build rigs independently in Ras Al Khair, once IMI's world class shipyard opens. LEL will assist IMI to localize supply chain in Kingdom. These project award's will therefore contribute to the long-term growth of this new industry in Saudi Arabia and will enable IMI to independently build jack-up drilling rigs in Saudi Arabia to the highest international rig building standards," said Fathi K. Al-Saleem, IMI Chief Executive Officer.

Commenting on the project award, Kelly McHenry, CEO of ARO, said: "ARO is committed to increasing our presence in the region and we are pleased to reach agreements that will enable us to use local manufacturing capabilities to support our fleet growth objectives.  Through these purchase agreements, ARO will acquire two state-of-the-art jack-ups and we look forward to partnering with IMI on the delivery of these rigs."

"This project award further strengthens the business relationship between IMI and its shareholders, as well as contributing to the development of a localized Industry supply chain infrastructure, technical expertise for Saudi Nationals, and a track record in jack-up rig building," said Al-Saleem.

International Maritime Industries, located in The King Salman Complex for International Maritime Industries & Services at Ras Al-Khair, Saudi Arabia, will be the largest, full service maritime facility in MENA. When building is complete, the annual capacity of the facility will be four (4) new build offshore rigs and over 43 new build vessels including VLCCs, in addition to servicing more than 260 maritime products. Major production operations are expected to commence toward the end of 2020 with the facility reaching its full production capacity by 2022. International Maritime Industries is a joint venture between Saudi Aramco, Lamprell, Bahri and Hyundai Heavy Industries.

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SOURCE International Maritime Industries (IMI)