Petrofac signs joint venture agreement with Zamil Group Holding

Petrofac Limited, a provider of facilities solutions to the oil & gas production and processing industries, has signed a joint venture agreement with Zamil Group Holding Company to create and operate a new service centre facility in the Kingdom of Saudi Arabia. Zamil is a diversified industrial conglomerate.

The joint venture company (JV), will be a limited liability company, owned and operated equally by Petrofac and Zamil with each partner making an initial cash investment of SAR2 million ($0.53 million). The companies will also provide additional investment for plant and equipment.

The JV is expected to begin trading in early 2010. Petrofac's interests in the JV will be overseen by its mechanical services operation, part of the Offshore Engineering & Operations business, which already operates similar facilities in the United Arab Emirates. The service centre will provide a range of capabilities covering oilfield and process plant equipment. The activities will include the overhaul, maintenance and repair for process equipment as well as the manufacture of spare parts, component reconditioning, assembly of third-party equipment and field-service support.

Deal Value (US$ Million) 0.53
Deal Type                Partnership
Sub-Category             Joint Venture
Deal Status              Announced: 2009-11-24

Deal Participants

Partner 1 (Company) Petrofac Limited
Partner 2 (Company) Zamil Group Holding Company

Deal Rationale

The partnership with the Zamil Group enables Petrofac to create a platform for the delivery of essential equipment maintenance and reconditioning services in Kingdom, and underlines the group's commitment to having a long-term presence in Saudi Arabia.

Related terms: business, conglomerate, engineering, gasoline, industrial, investment, joint venture, oilfield, partnership, plant, saudi arabia