Bahri, a worldwide market leader, declared today that it has consented to a vessel purchase contract (VPA) with IMI and a subsequent subcontracting agreement to construct a 319 000 DWT Very Large Crude-oil Carrier (VLCC) with shipment anticipated for October 2021 in partnership with its long-term partner Hyundai Heavy Industries (HHI). Other agreements signed will ensure all parties pursue a series of long-term business activities, whether jointly or severally on the basis of a multilateral relationship.

The VPA is building on the MOU between Bahri, IMI, and HHI signed in June of this year. Bahri is scheduled to issue its first VLCC order before the end of July 2019 by the MoU, whereas IMI is engaged as subcontractor for HHI's construction in Ulsan, South Korea, in the VLCC world class plant.

Abdullah Aldubaikhi, CEO, Bahri, commented on the contract: "Our relationship with IMI and HHI reflects a big step towards our long-term objectives, which ultimately will lead to key milestones in transforming the country into an significant regional and world-wide logistics and transport hub. The cooperation will also contribute to the Kingdom's own indigenous shipbuilding industry. We are able to benefit from innovation and knowledge transfer in order to develop, boost, encourage local content and generate the right jobs for our people in line with Saudi Vision 2030's goals.

"IMI has many advantages in this Sub-contract Award, including the transfer of expertise from HHI to IMI, the mechanism to allow IMI to use Intellectual Property (IP), IMI growth plans for IMI staff to obtain further abilities in shipbuilding and planning, as well as technical aid," said Fathi K. Al-Saleem, IMI CEO. It also will lead this new industry's long term development in Saudi Arabia, will empower IMI to fabricate VLCCs in Saudi Arabia separately, according to the largest global norms for shipbuilding he added.

' The award of this project further fortifies IMI's corporate links with its stakeholders, as well as helping to develop localized supply chain facilities for the maritime sector, Saudi technical knowledge and a reputation in shipbuilding ' adds Al Saleem.

IMI,a joint endeavor between Saudi Aramco, Bahri, Lamprell, and HHI, is found atthe King Salman Complex for InternationalMaritime Industries and Services in Ras Al-Khair, Saudi Arabia. When finished, the shipyard will be the biggest full-service maritime facility in MENA and will be able, in addition to servicing over 260 maritime goods, to produce four fresh offshore plants each year and more than 43 fresh construction boats, including VLCCs. The plant is anticipated to start major manufacturing activities by the end of 2020, achieving complete manufacturing ability by 2022.