01 JUN 2016

ollowing the previous announcement of The National Shipping Company of Saudi Arabia (Bahri) on January 26, 2016 regarding the Memorandum of Understanding (MoU) singed on January 25, 2016 with Saudi Arabian Oil Company (Saudi Aramco), Hyundai Heavy Industries CO., LTD. (South Korean Company) and Lamprell Energy Limited (UAE Company) (the Parties in connection with the potential partnership collaboration for establishing a Maritime Yard at Ras Al Khair in eastern Saudi Arabia, Bahri announces that the parties have signed yesterday a joint development agreement (JDA) which represents the next phase of development between the partners after signing the Memorandum of Understanding (MoU) in January. Pursuant to the MOU, the partners have been working closely to undertake preliminary due diligence and feasibility studies on various aspects of the project and that work is ongoing. Good progress has been made in recent months and with the signing of the JDA, the partners intend to 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 costs associated with the workstreams covered by the JDA will be shared by the parties according to the agreement. The JDA terminates on the earlier of the effective date of the shareholders agreement or one year after the signing date. The intended Maritime Yard will provide engineering, manufacturing and repair services for offshore rigs, commercial vessels and offshore service vessels.