Construction has begun on Saudi Aramco joint venture shipyard on Saudi Arabia’s eastern coast following the agreement for a loan from the Saudi Industrial Development Fund (SIDF), Reuters reported.

The joint venture, under the International Maritime Industries (IMI), is a partnership between state oil company Saudi Aramco, national Shipping Co of Saudi Arabia (Bahri), and South Korea’s Hyundai Heavy Industries Co.

The project will be lead by an Aramco executive, which Aramco stated will cost more that $5.3 billion.

In a statement issued by oil rig builder Lamprell Plc, their total equity contribution for the project is expected to be up to $140 million.

The facility is planned to cover an area of nearly 12 million square-meters and have an annual capacity to manufacture four offshore rigs and over 40 vessels, including three Very Large Crude Carriers (VLCCs), and service over 260 maritime products.