Through this collaboration, Xtreme Coil expects to promote and provide certain contract drilling services and products through Shoaibi’s operations and market capabilities in the Kingdom of Saudi Arabia and Algeria targeting national oil companies and their global affiliates and to other companies operating in Saudi Arabia, Bahrain and Algeria.
Xtreme Coil will own 80% and Shoaibi will own 20% of the new joint venture companies. 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 will establish an office in Saudi Arabia to support rig mobilization and ongoing operations in that country.
The joint venture will address 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.
Faisal 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.”
