Shoaibi Group and Xtreme Coil have formed the first joint venture, Xtreme Coil Drilling Saudi Arabia Ltd. The parties to the joint venture agree to work on an exclusive basis to provide mutual benefit by introducing and engaging Xtreme Coil's contract drilling services to exploit current and future opportunities with respect to oil and natural gas development projects in Saudi Arabia. The joint venture addresses a number of principles regarding structure of the new companies, funding and accounting, governance, change of control, technology licensing, services related to drilling equipment, potential drilling contracts and performance criteria, timetables, confidentiality, and compliance, among other business matters.
Commenting on the formation of this joint venture, Faisal Al Shoaibi, Director of Shoaibi Group, said, "Shoaibi Group is proud to partner with Xtreme Coil in this venture. We believe this partnership is in perfect synergy with Shoaibi Group's strategy to provide proven innovative technology to the MENA region."
Xtreme Coil's business strategy to expand activities in Saudi Arabia will benefit from the relationship now formalised with the Shoaibi Group and Xtreme expect to pursue a range of new opportunities through this joint venture.
Both parties to the joint venture have agreed to provide their proportionate share of funding on a project-by‐project basis and Xtreme Coil Drilling Saudi Arabia Ltd. is establishing an office in Saudi Arabia to support rig mobilization and ongoing operations in that country. Pre‐existing joint venture arrangements involving Xtreme Coil will not be affected by the terms of this joint venture.
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