Singapore’s Sembcorp Marine Ltd and Saudi Aramco are studying the feasibility of developing a maritime yard in Saudi Arabia.
It would provide engineering, manufacturing and repair services for rigs, platforms, commercial vessels and offshore service vessels.
The National Shipping Company of Saudi Arabia (Bahri) is also a party to the Memorandum of Understanding signed August 19.
The parties targeted a decision within 15 months.
Singapore is owned 49.5% by Singapore’s government-held Temasek Holdings.
Saudi Arabia is the biggest crude producer in OPEC.
Sembcorp has developed maritime yards in Singapore, China, India, Brazil and the USA, where it offers ship repair, shipbuilding, ship conversion, rig building and repair to offshore engineering and construction, including topsides fabrication.
Saudi Aramco, the world’s biggest state-run producer, now produces over 9 million barrels of crude per day.
This year it started pumping from the offshore Manifa field in the Arabia Gulf, the world’s fifth-largest oilfield.
Saudi Aramco has a daily production capability of some 12 million barrels per day.