Saudi Aramco has signed a memorandum of understanding (MoU) with South Korea’s Hyundai Heavy Industries (HHI) to collaborate on projects in Saudi Arabia including a maritime yard at Ras al-Khair.

Aramco said that the MoU is lays out a framework for cooperation in areas such as engineering, procurement and construction (EPC), downstream and the development of a casting a forging facility.

The agreement also covers the development of a maritime yard and the advancement of maritime diesel engine manufacturing in the kingdom.

The agreement was signed by executives from both companies on 12 November and was initiated when Aramco visited HHI’s operations in Ulsan, South Korea, in April 2015.

Aramco said it plans to develop a maritime yard in Ras al-Khair, on the kingdom’s Gulf coast, in coordination with The National Shipping Company of Saudi Arabia (Bahri) and HHI as potential partners.

“The yard will leverage the companies’ expanding offshore business to accelerate localisation efforts of the Kingdom’s young and promising maritime industry and its associated supply chain,” said Aramco. 

“The collaborative partnership also extends to opportunities in areas such as: EPC, downstream opportunities and electric equipment manufacturing,” the state-owned oil company added.