Bahri Annual Report-2017

Annual Report 2017

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Strategic Partnerships

Bahri’s Strategic Partnership at Ras Al-Khair Industrial City

Bahri, has invested around SAR3 billion in the King Salman International Complex for Maritime Industries and Services and holds a stake of 19.9 percent worth SAR522.38 million. Its partners’ shares in the project are worth SAR2.625 billion, with Saudi Aramco holding 50.1 percent, Lamprell Plc 20 percent and HHI 10 percent. Partners’ Stakes In May 2017 Bahri concluded a joint venture with Saudi Aramco, Lamprell Plc and HHI for the establishment and operation of an international maritime yard in the King Salman International Complex for Maritime Industries and Services at Ras Al- Khair Industrial City, which is situated by the coastline of the Arabian Gulf in the northeast of Saudi Arabia. This cooperation is in line with Bahri’s commitment to realizing Saudi Vision 2030. It will contribute to economic diversification and increase the country’s gross domestic product over the long-term. It will also develop local industry and the services sector while supporting the transportation and logistical services sectors. Furthermore, it will create thousands of new and sustainable job opportunities and nationalize expertise related to the maritime industries. This strategic agreement aims to leverage increasing demand for services and maritime industry services in the region, by providing competitive and high-quality solutions designed in line with

international standards. Saudi Aramco has also signed other key partnerships including a preliminary agreement to build the first Saudi-built offshore drilling platform designed in line with world- class standards by 2019, as well as the first domestically-produced VLCC sailing around the world by 2021. Initial production of the complex is expected to start in November 2018. This will be followed by operation of the drilling equipment in February 2019, shipyard in 2020 and maintenance and renovation area in 2021. Total production capacity will be completed by 2022.

King Salman International Complex for Maritime Industries and Services - Ras Al-Khair

Bahri’s stake

19.9% SAR-522.38 Million

10%

20%

50.1%

The total cost of the project is SAR-3 billion Bahri’s partners’ financial contribution is SAR-2.625

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