Oil company Saudi Aramco has teamed up with Saudi Arabia's national carrier Bahri and major South Korean shipbuilder HHI to construct a shipyard that will be the region's biggest with a USD 5.2 billion budget.
Shipments of crude oil from Saudi Arabia to the US dropped to a seven-year low last week, and the trend looks set to continue amid OPEC's output cap deal and the country's seasonal increase in domestic oil consumption.
Plans for a new giant shipyard in Saudi Arabia worth about USD 6 billion form part of the country's strategy to relieve dependence on especially the oil market. "This is with the future in mind," a source close to the project tells ShippingWatch.
A giant shipyard in Saudi Arabia will supply supply the country's oil industry with tanker vessels and rigs while also helping to create more than 10,000 jobs. Saudi Aramco and Hyundai Heavy Industries are part of the joint venture behind the yard. Investments will total billions of dollars.
The oil price is balancing at its highest level in 12 months. Russian president Vladimir Putin has laid a solid market foundation, but Goldman Sachs questions the likelihood of balance being restored to the market.