JEDDAH – The National Shipping Company of Saudi Arabia (Bahri) has entered into a Memorandum of Understanding (MOU) with Saudi Aramco and Sembcorp Marine Ltd (a leading global marine and offshore engineering group based in Singapore) to conduct a feasibility study for the development of a world-class maritime yard in Saudi Arabia. In a statement issued Tuesday, Bahri said the MOU is valid until an investment decision is made or terminated, within 15 months from its effective date. Aramco and Sembcorp have previously completed preliminary studies leading to this detailed assessment phase, which Bahri is now participating as a new partner. The intended maritime yard will provide engineering, manufacturing and repair services related to rigs, platforms, commercial vessels and offshore service vessels. In Bahri, the initiative will be managed by the Gas & Offshore Business Unit currently being established. The unit will also explore other investment opportunities in the promising offshore services industry, in pursuance of the company's strategy to grow and diversify its business activities. The financial implications of the venture on Bahri will only be established upon completion of the feasibility assessment, which will include all activities from construction, operations and commercial planning to supply chain development, required for the three equity partners to make a final investment decision. Bahri, which is 28 percent owned by the state-owned Public Investment Fund, agreed a $1.3 billion merger with Vela International Marine in October. The tie-up made it the world's fourth largest owner of very large crude carriers, or VLCCs. The firm bought Vela, previously owned by Aramco, for $832.75 million in cash and 78.75 million in new Bahri shares at a price of SR22.25 ($5.93) each. Shares in Bahri were down 1.5 percent at SR22.95 at 0830 GMT against a slightly lower bourse, having risen 15.1 percent in the previous four sessions.Singapore-listed Sembcorp Marine ended Tuesday down 1.8 percent. In 2013, Bahri is awarded as one of the top companies in the Arab Region by Forbes Middle East and also won Seatrade 2013 Global Perform Award. The company was also recognized as Best Managed Company in the Middle East under Transportation & Shipping Sector by Euromoney in 2012. Separately, KKR & Co., the private-equity firm led by Henry Kravis and George Roberts, created a unit to lend to the maritime industry, including assets such as drilling rigs and shipping vessels. The unit, called Maritime Finance Company, will be seeded with $580 million, of which 45 percent will come from KKR's balance sheet, its mid-market merchant banking unit and its publicly traded KKR Financial Holdings LLC (KFN) division, according to a statement today from the New York-based firm. Maritime Finance will be led by Kristan Bodden and Gabriel Tolchinsky, former partners at advisory firm Helios Advisors LLC. — SG