1st Jun 2016 06:39
LONDON (Alliance News) - Lamprell PLC on Wednesday said it has signed a joint development agreement with three major companies that may lead to a new maritime yard being developed by the group in Saudi Arabia.
The London-listed energy services company signed the joint development agreement with Saudi Aramco, the National Shipping Co of Saudi Arabia, and Hyundai Heavy Industries following the memorandum of understanding signed between the group back in January.
Saudi Aramco is the national oil company of Saudi Arabia, and the National Shipping Co is also known as Bahri.
Lamprell said the partners have made "good progress" on undertaking preliminary due diligence on the potential project, which covers the possible collaboration for building a maritime yard at Ras Al Khair in eastern Saudi Arabia.
The partners will now assess the operational, financial, personnel and legal aspects of the project in detail with a view to making a final investment decision in "due course". The partners will equally split the cost of the ongoing work covered by the agreement.
"The outcome of the agreement to engage in the potential joint venture partnership will be determined upon finalisation of all activities and required due diligence, as well as all necessary corporate approvals," said Lamprell.
"Execution of the joint development agreement may or may not lead to the participation of Lamprell in this venture and negotiations will continue until completion of such process, at which time the company will be in a position to make a further announcement on its participation," the company added.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
LAM.L