EnerMech Invest £5 Million in Saudi Arabian Joint Venture
The company has signed a joint venture agreement with Shoaibi Group to form EnerMech Saudi Arabia Limited (EnerMech S.A. Ltd) and will share office and warehousing facilities in Al Khobar.
EnerMech S.A. Ltd will provide crane, hydraulics, valves, process, pipelines and umbilicals (PPU), lifting and inspection services, equipment rental and specialist training to the Saudi Arabian energy sector.
The company expects to invest up to $8 million (£5 million) in infrastructure and equipment in the next 18 months and to have a Saudi Arabian workforce of up to 40 in the first two years.
Shoaibi Group will facilitate EnerMech S.A. Ltd’s operations and provide essential marketing and technical support services under the agreement. This new joint venture will further enhance Shoaibi Group’s vast energy services portfolio which caters to most segments of the oil, gas and petrochemical industries in Saudi Arabia.
EnerMech managing director, Doug Duguid, said: “Building a strong presence in Saudi Arabia has always been our ambition and this partnership with Shoaibi Group is an excellent platform which allows us to do this. We have existing bases in Dubai, Abu Dhabi and Qatar and this joint venture is a natural progression in growing our business in the Middle East.”
EnerMech has previously completed a valves management project and provided training services in Saudi Arabia. Norman Kirk, who was previously with Baker Hughes in Saudi Arabia, has been appointed general manager for the new entity and has wide experience of the oilfield completions market in the Kingdom.
Chairman of EnerMech S.A. Ltd, Mr Faisal Al Shoaibi, said: “We are extremely pleased to enter into this venture with EnerMech. Shoaibi Group’s growth is dependent on such partnerships and we are delighted to collaborate with EnerMech and jointly develop the business in Saudi Arabia. By leveraging our combined strengths and creating a common platform to pool our expertise, the venture is bound to be successful.”
EnerMech has invested in a range of hydraulics and pumping equipment to be based in-country and will make further investment to expand the equipment fleet. The company has a presence in 20 countries, covering all the major international oil and gas producing hubs.
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Published in Valve User Magazine Issue 23
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