UAE-based Lamprell has announced a targeted strategy to develop its business in Saudi Arabia, that is based on building up an enhanced local presence in the Kingdom.
Investment in Saudi Arabia is central to the Lamprell group’s business plans and to date has primarily centered around its involvement in the International Maritime Industries (IMI) shipyard joint venture with Bahri, Saudi Armco and Hyundai Heavy Industries. In addition, Lamprell has announced that it is pursuing other opportunities to gain a stronger foothold in this fast-growing market. This includes aiming to qualify as a contractor for Saudi Aramco under its Long Term Agreement (LTA) programme, through which contractors undertake offshore engineering, procurement, construction and installation projects in the oil and gas sector. A key component of all LTA projects, Lamprell points out, is compliance with Saudi Aramco’s In-Kingdom Total Value Added (IKTVA) programme, which is designed to encourage and increase local investment by LTA contractors.
Lamprell says it is now taking steps to achieve IKTVA targets by developing its local capabilities and by entering into partnerships with strong local businesses. Central to this strategy is the formation of a new company. Lamprell Saudi Arabia, which has Asyad Holdings as its local partner. In addition, Lamprell has confirmed that the Blofeld Investment Management fund, based in Saudi Arabia, has increased its shareholding in the company to 10.8%.
Lamprell chief executive, Christoper McDonald, says “We are uniquely positioned to build our business in Saudi Arabia with the complementary opportunities of investment in the IMI yard and our LTA bid to Saudi Aramco. We are committed to developing our local capabilities and are looking to realize these opportunities by aligning with strong partners in-Kingdom.”
Lamprell has a leading regional market position in the fabrication of jack-up rigs and liftboats as well as rig refurbishment work. It employs around 5000 people, mainly across facilities in Hamriyah, Sharjah and Jebel Ali.