Saudi Aramco announced that it signed agreements with Emirati offshore rig company Lamprell, the National Shipping Company of Saudi Arabia and Hyundai Heavy Industries Company to establish a joint partnership to build a maritime yard off the eastern coast of Saudi Arabia, reported United Press International (UPI).

The maritime facility will be the largest of its kind in the region and will facilitate the requirements needed for the offshore oil and gas production industry, as well as the vessels that support that sector.

Major production operations are expected to commence in 2019 with the facility reaching its full production capacity by 2022.

Aramco agreed to purchase at least 20 drilling rigs and corresponding support vessels through the joint venture. Saudi Aramco will contribute as much as $350m and the Saudi government will provide up to $3.5b of the total $5.2b to build the facility.

Meanwhile, Russian Rosneft’s CEO, Igor Sechin, and Saudi Aramco’s Chief, Amin Nasser, had held a formal, scheduled meeting in which they discussed the new relationship between the energy superpowers, according to Business Insider.

The two CEOs discussed possible ways of cooperating in Asia, such as Indonesia and India, as well as in other markets.

The partnership between the two companies will be closely watched by big oil consumers around the world, which have long relied on the hot rivalry between their top suppliers to secure better deals.