The non-exclusive cooperation agreement paves the way for Swiber, PVC and VSP to jointly explore opportunities for exchanging information, cooperation, and technical assistance in order to foster mutual development and strengthening of the partiesí position in the oil and gas industry in Vietnam and overseas.
PVC is a subsidiary of the national oil and gas corporation, Vietnam Oil & Gas Corporation ("PetroVietnam"). The latter, established in 1975, is a state-owned holding company responsible for all the oil and gas resources in Vietnam. PetroVietnamís activities, through its various companies and wholly owned subsidiaries, covers the full spectrum of oil and gas operations from oil and gas exploration and production to storage, processing, transportation, distribution and services.
PVC was started in 1983 to create a niche business specializing in providing engineering and construction activities for the oil and gas sector. With a staff strength of approximately 2,000, PVC designs and supplies steel structures, pipelines and process pipings, petroleum storage products for onshore and offshore oil and gas projects. VSP is a joint venture company established in 1981 between the governments of Vietnam and the former Soviet Union. The company is involved in Exploration and Production activities and has produced over 150 million tonnes of oil from its concessions in Vietnam. In addition, VSP has a services arm that provides a wide range of offshore services in support of its own and other Oil and Gas companies working in Vietnam. These services consist of Drilling, Geophysics, Construction, Maintenance, Marine transport, and related administrative divisions , which in total employ over 6,000 personnel.
The 3-year cooperation agreement will extend the reach of Swiber to Vietnam for the very first time.
Mr. Raymond Goh, founder and Chief Executive Officer of Swiber, expressing his excitement over the partnership with the two state-linked companies, said, "We are very pleased to be joining hands with PVC and VSP. Tapping on the support extended to them by the Vietnam government, we believe that this partnership opens new market opportunities for us, allowing us to benefit from the two partiesí strong reputation, excellent track record and vast experience in the oil and gas industry in Vietnam. By joining hands, we are able to combine resources to bid and execute oil and gas services projects in Vietnam, which we believe, have tremendous growth potential. We consider this as a landmark event in our efforts to build a presence in Vietnam."
"This strategic collaboration is part of Swiberís efforts to extend our reach to new markets. The agreement has established the start of our strategic partnership with these two Vietnamese companies and we believe this will set the stage for more future dealings to come. With the experience and track record of PVC and VSP, we are confident that they can help establish Swiberís presence in Vietnam," added Mr. Goh.
Just recently, on 14 September 2007, Swiber announced that it has signed a Memorandum of Understanding with Rahaman Sendirian Berhad, to establish a 51:49 joint venture company ("JV"), in Negara Brunei Darussalam1. Swiber will own 51% of the JV with Rahaman holding the remaining 49% stake. The formation of this JV is a direct push to expand Swiberís presence in the Brunei market.
Swiber was listed on the Main Board of SGX-ST on 8 November 2006. For its second quarter ("2Q 2007") ended 30 June 2007, Swiber reported an outstanding set of financial performance. The underlying buoyant market conditions for the offshore oil and gas industry sent Swiberís 2Q 2007 net profits soaring 700% to a record US$6.3 million, on the back of an impressive 232% growth in revenue for the same quarter to US$25.4 million.
The Group expects continued growth going forward, supported by an outstanding order book, including letters of intent, of US$218.7 million as at 30 June 2007.
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