KS Energy, ICA Agree to Form JV for Drilling Services in Mexico
Singapore-listed KS Energy Limited (KS Energy) announced Monday its move into Mexico with the signing of a Memorandum of Agreement (MOA) with one of Mexico’s renowned conglomerate Empresas ICA, S.A.B. de C.V. (ICA).
Under the terms of the MOA, a limited liability company will be established to be jointly owned by ICA and KS Drilling Pte Ltd (KS Drilling), an 80 percent owned subsidiary of KS Energy. The jointly controlled entity (JCE) will provide drilling services and heavy capital equipment for the offshore oil and gas exploration market in Mexico. By 2014, the JCE is expected to initially require two new high specification jackups valued at approximately $240 million each.
“This is only the start for our joint venture entity and a new milestone for KS Drilling,” said Kris Wiluan, executive chairman and CEO of KS Energy, “and we are confident that there are many more opportunities where, together with ICA, we can offer our drilling capabilities to the oil and gas industry in Mexico.”
ICA is an established conglomerate engaged in the construction, infrastructure, concession, and homebuilding markets in Mexico and Latin America. Founded in 1947 by Bernardo Quintana, ICA (Spanish for Civil Engineering Associated) is now Mexico’s leading construction and infrastructure operation company. ICA has been listed on the Mexican (BMV: ICA) and New York (NYE: ICA) stock exchanges since 1992.
Alonso Quintana, CEO of ICA said “this partnership reinforces our vision of providing high quality infrastructure solutions to our clients. KS Drilling’s experience is key in this high growth market.”
This foot print into Mexico closely follows KS Energy’s recent announcement of its proposed joint venture with Indonesia’s Pertamina Drilling to expand its drilling activities in Indonesia.
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