International mechanical services group EnerMech has announced the signing of a joint venture agreement with Abdulla Fouad Group (AFG) to support the growth of its operations in Saudi Arabia
The announcement was made at the Saudi Arabia Oil & Gas Exhibition (SAOGE) in Dammam, Saudi Arabia.
This arrangement follows AFG’s acquisition of Shoabi Group’s oil and gas agencies, joint ventures and facilities, which was announced in October this year.
Based in Al Khobar, EnerMech’s Saudi Arabian operation provides crane, hydraulics, valves, process, pipelines and umbilicals (PPU), lifting and inspection services, equipment rental and specialist training to the Kingdom’s energy sector.
AFG’s CEO Zahid Khawaja said, “This agreement further strengthens our footprint in the oil and gas sector 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’s CEO Doug Duguid added that the firm has been operating in Saudi Arabia for more than two years and the partnership with AFG was an important step forward in allowing them to utilise their full potential in the important energy region.
Headquartered in the UK, EnerMech employs 2,400 staff and has a presence in 20 countries, covering all the major international oil and gas producing hubs. Annual turnover is projected to be in excess of US$408mn for 2014.
AFG will facilitate EnerMech’s Saudi Arabian operations and provide essential technical support and marketing services under the agreement.
EnerMech’s general manager Bob Lee, Saudi Arabian operations, said, “This important joint venture agreement will give us access to a customer base and excellent opportunities which will fast forward EnerMech’s growth in Saudi Arabia and neighbouring countries. We have people and equipment in-country and are looking forward to growing our business in the region alongside our new partner.”
EnerMech already enjoys a strong presence in the Middle East with operational bases in Abu Dhabi, Qatar and Ras al Khaimah.