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Saudi Aramco Establishing Two Offshore Fabrication Yards in Ras Al Khair

The Saudi Arabian Oil Company (Saudi Aramco), in collaboration with international partners, is establishing two offshore fabrication yards that aim to deliver a more than 200 percent increase in the Kingdom of Saudi Arabia’s offshore fabrication capacity.


The new yards are being constructed in Ras Al Khair in collaboration with National Petroleum Construction Company (NPCC) and McDermott International.


They are expected to fabricate and assemble offshore platforms, jackets and structures for subsea pipelines.


Designed to international standards and harnessing latest technologies, they are intended to serve the Kingdom, GCC and broader markets.


Establishing the yards at Ras Al Khair also aims to support localization of the maritime industry, and supplement the nearby King Salman International Complex for Maritime Industries and Services.


Start-up of the facilities is planned for the third quarter of 2023, with the initial combined production capacity estimated at roughly 70,000 metric tons (MT) per year, increasing the Kingdom’s total offshore fabrication capacity from 30,000 MT to 100,000 MT annually. When fully operational, the yards are expected to create up to 7,000 direct and indirect jobs, with a target Saudization rate of 70%.


It is anticipated that the new offshore fabrication yards will support economic expansion and diversification in Saudi Arabia, and tap into different opportunities to create value. They could also help localize state-of-the-art technologies, while supporting Saudi Arabia’s development as a center of excellence for maritime engineering, equipment, material manufacturing and fabrication.


The offshore fabrication yards are expected to take advantage of advanced infrastructure at Ras Al Khair, including Ras Al Khair Port and the King Salman International Complex for Maritime Industries and Services.


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