EnerMech Ltd., an international mechanical services group, announced Wednesday that it has signed a joint venture agreement with Abdulla Fouad Group (AFG) to support the growth of its operations in 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.
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 Saudi Arabian energy sector.
Headquartered in the Aberdeen, EnerMech employs 2400 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 $408 million (GBP 260 million) for 2014.
AFG will facilitate EnerMech’s Saudi Arabian operations and provide essential technical support and marketing services under the agreement.
AFG Chairman Sheikh Abdulla Fouad 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 CEO, Doug Duguid, said: “We have been operating in Saudi Arabia for more than two years and our partnership with AFG is an important step forward in allowing us to utilize our full potential in this important energy region.”
Bob Lee, general manager of EnerMech’s 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.
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