T-3 Energy Services, Inc. has entered into a joint venture arrangement to be effective September 1, 2008, or such earlier date as agreed to by the parties, with Aswan International Engineering Company LLC.
Aswan, who is a member of the Al Shirawi Group of Companies, is located in Dubai and provides manufacturing, repair and remanufacturing of oilfield products for customers operating in the Middle East. The joint venture, which will be named T-3 Energy Services Aswan Middle East LLC ("the Company"), will be operated and controlled by both parties in equal percentages.
Under the terms of the agreement, T-3 Energy will provide the Company with a license and technical assistance to repair, manufacture, remanufacture and service equipment for customers in the United Arab Emirates, Kuwait, Qatar, Bahrain, Oman, Yemen, Algeria, Egypt, Pakistan and Iraq. Aswan will provide the Company with manufacturing space pursuant to a sublease agreement along with its competence and experience in Dubai with respect to agency support and operations support. On the effective date of the joint venture arrangement, T-3 Energy and Aswan will enter into a contribution agreement whereby T-3 Energy and Aswan will each contribute certain equipment and operations capital to the Company.
Gus D. Halas, T-3 Energy's Chairman, President and Chief Executive Officer, commented, "We are excited to work with Aswan and Al Shirawi as their extensive experience and contacts in the oil and gas industry should help us expand our pressure control group into the Middle East. This joint venture arrangement is another milestone in T-3's strategy of international growth. It should allow us to provide companies operating in the Middle East with a readily available source of T-3's original equipment products along with a rapid response to their aftermarket service needs. Our physical presence and product availability in the Middle East provides further commitment to better meet our customers' needs."
Kabir Valrani, Chief Executive Officer of Aswan International Engineering Company LLC, added, "We are excited about the new joint venture in Dubai, UAE with T-3 Energy Services. T-3 has vast experience and engineering know how in the pressure control equipment. We plan to have state-of-the-art capital equipment and infrastructure for the remanufacture, service and recertification of pressure control equipment and will be playing a key role to cater to the growing needs of the Middle East oilfield customers."
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