Shoaibi, US group in new coil drilling JV
Khobar (Saudi Arabia), April 3, 2010
Shoaibi Group, a leading Saudi business group, has joined hands with US-based Xtreme Coil Drilling Corporation, to introduce new technologies for drilling with coiled tubing in the Mena region.
Under the agreement, Suhayl Abdul Mohsin Al Shoaibi & Sons Holding Company and its affiliates (Shoaibi Group) will set up a new joint venture with Xtreme Coil Drilling targeting national oil companies and their global affiliates as well as other companies operating in Saudi Arabia, Bahrain and Algeria.
The new company, Xtreme Coil Drilling Saudi Arabia, 80 per cent owned by Xtreme Coil Drilling and 20 per cent by Shoaibi Group, will be based in the Kingdom to support its rig mobilization and ongoing operations.
Under the JV pact, the two companies will work on an exclusive basis to provide mutual benefit by introducing and engaging Xtreme Coil’s contract drilling services to exploit current and future opportunities with respect to oil and natural gas development projects in Saudi Arabia.
The joint venture addresses a number of principles regarding structure of the new companies, funding and accounting, governance, change of control, technology licensing, services related to drilling equipment, potential drilling contracts and performance criteria, timetables, confidentiality, and compliance, among other business matters.
Commenting on the new venture, Faisal Al Shoaibi, director of Shoaibi Group, said the partnership was in perfect synergy with the group's strategy to provide proven innovative technology to the Mena region.
'Xtreme Coil’s business strategy to expand activities in Saudi Arabia will benefit from the relationship now formalised with the Shoaibi Group and Xtreme expect to pursue a range of new opportunities through this joint venture,' he remarked.
Xtreme Coil develops and applies leading edge patented and patent-related technology and designs to build, transport, and operate new COTD drilling rigs.
In addition to contracts in the US and the United Mexican States, Xtreme Coil markets proprietary, dual purpose drilling rigs to existing customers and to other international operating regions.
Xtreme Coil drills with larger coil and conventional drill pipe to reach hydrocarbons in deeper horizons.
Shoaibi group, which has operations in Bahrain, Algeria, and Egypt, works with local and international partners, predominately in the oil, gas and petrochemicals industry, to introduce innovative proven technology to the Mena region.
The group comprises over 100 subsidiaries, local and international joint ventures and agency representations in the fields of exploration, production, and support services to the oil and gas industry, as well as oil refining, gas processing chemicals, petrochemicals, maritime services, refined products and distribution.-TradeArabia News Service