Novomet is the fastest growing ESP manufacturer in the Russian Federation with an estimated 60,000 operating units.
In comparison, similar ESP units operating in the North Sea sector does not exceed 100 while in the Middle East there are approximately 5000 units deployed.
The Joint Venture was brokered and Framework Agreement drafted by Dubai legal and business support consultancy Hugh Fraser International-Ventures International (HFI-VI).
Novomet currently has 35% of the Russian ESP market and is growing fast. With a proactive and responsive approach to customer requirements and a patented technology which gives them a competitive advantage over other manufacturers, Novomet will be of enormous interest to Middle East oil and gas operators and contractors.
Petrocomp general manager, Ahmed Al Mashgari, said: "This is a perfect fit for both companies. Novomet has superb, innovative technology and the manufacturing capability to make a huge impact in the Middle East while Petrocomp has the market knowledge, marketing ability and an understanding of the different cultures involved, to make this happen.
"The ESP business is a very conservative market which makes penetration difficult, especially if you have to compete with established Western companies that have a long track record working with the unique characteristics of the oil reservoirs in this part of the world.
"But even in the short time since the JV was formed, we have already made great strides in some very tough markets where the barriers are traditionally very high, and I am confident this will result in generous returns for both partner companies."
HFI lawyer Amr El Sabahi, who oversaw the legal work associated with forming the JV, added: "The Novomet/Petrocomp JV is an excellent example of how HFI-VI can assist Russian companies contemplating investment opportunities in the Middle East.
"One of our great strengths is the diversity of the HFI team, who speak many languages including Arabic, English, Russian, French and Italian, and are comprised of different legal backgrounds that combine both the Anglo-American legal system and the civil law legal system.
"This helps us overcome any language barrier or any possible misunderstandings and shortens the negotiations, drafting and legalization stages, which results in ensuring the new business is up and running efficiently in a very short time."
Most Popular Articles
From the Career Center
Jobs that may interest you