Lamprell said it is looking to increase business in Saudi Arabia by setting up a local joint-venture after a Saudi company bought 10 per cent stake in the UAE-based rig builder.
Lamprell is setting up Lamprell Saudi Arabia, a Saudi joint venture with local partner Asyad Holding in order to qualify for contracts by Saudi Aramco, the world’s largest oil company.
Aramco, which is supporting the government’s In-Kingdom Total Value Add Program, requires companies/ suppliers to contribute to developing in-country capabilities.
Meanwhile, Lamprell said Blofeld Investment Management (Blofeld) has increased its shareholding in the company to 10.08 per cent.
Blofeld is a private family fund based in Saudi Arabia that is ultimately owned by the same investor from Saudi Arabia which owns Asyad Holdings.
Lamprell said it move will support the company’s strategic exposure in the region.
"We are uniquely positioned to build our business in Saudi Arabia with the complementary opportunities of investment in the International Maritime Industries yard and our LTA bid to Saudi Aramco,” said Christopher McDonald, CEO of Lamprell.
“We are committed to developing our local capabilities and we are looking to realise these opportunities by aligning with strong partners in-Kingdom. We are therefore pleased to gain the support from Saudi investors, both as a major shareholder through Blofeld Investment Management and as our local partner in our Saudi joint venture. The region has some of the strongest fundamentals in the oil sector and has demonstrated resilient production throughout the market downturn with an exceptional growth strategy going forward. Much of Lamprell's effort over the past two years focused on building a presence in the region and we are pleased to see our strategy supported by local partner," he added.
Late last year, Lamprell agreed to invest in a joint-venture with Saudi Aramco, Bahri and Hyundai Heavy Industries to develop a major maritime yard in the Arabian Gulf, known as International Maritime Industries.