Swicorp snaps up key stake in ME drilling firm
Riyadh, August 4, 2008
Swicorp Joussour Company has taken a majority stake in Mosvold Middle East Jackup Limited, a jackup drilling rig company.
The company, to be operated by Mosvold Shipping Holding, has contracts with Maritime Industrial Services (MIS) for construction of two Super M2 F&G jackup rigs, which are under construction at the MIS fabrication base and shipyard in Sharjah and an option to acquire two additional rigs, said a company official.
These rigs are ideally suited for drilling operations in the relatively shallow waters of the Persian Gulf.
Swicorp Joussour Company, a Saudi Joint Stock Company capitalised at SR2.67 billion ($712 million) is managed by Swicorp.
Joris Vreeburg, senior investment manager at Swicorp, Private Equity said: ’Two drilling rigs have recently been ordered from UAE-based Maritime Industrial Services Company, with expedited delivery dates in December 2009 and March 2010, with an option for two further rigs. Construction of the first unit is already well underway.’
He pointed out that Swicorp Joussour Company’s strategic objective was to invest in energy and related sectors that could directly benefit from the Mena region’s competitive advantages.
Presently, the Middle East is the biggest and fastest growing jackup market in the world, he noted.
“Mosvold has a very successful track record, extensive experience in the drilling industry and has again demonstrated that it is able to attract top tier managers and investors.’
’The oil & gas industry makes up the backbone of the Middle East’s economy and this company will be able to tap into the region’s demand for more offshore drilling rigs. The company will benefit from strong local knowledge combined with industry expertise from a small group of dedicated investors,’ he added.
Faysal Hamza, executive director, Swicorp, Private Equity, pointed out that offshore drilling had benefited from the continued boom in oil prices and hence fitted nicely within its investment scope.
’We expect that sustained high oil prices in combination with a challenge to replace reserves will continue to support high dayrates for these types of rigs. The Persian Gulf has historically been relatively underdeveloped in this field, but we think this will change due to a depletion of easily accessible onshore resources and a general need for more oil and gas production,’ he added.-TradeArabia News Service