JEDDAH - Swiber Holdings Limited in Singapore, the well known service provider in the offshore industry, is targeting the flourishing Gulf region to expand its offshore business.
The Group has announced that its subsidiary, Swiber Offshore Construction Pte Ltd, has signed a memorandum of understanding (MoU) with a leading Saudi Arabic firm, Rawabi Holding Company Limited, to develop business in offshore EPCIC projects and marine activities in Gulf Cooperation Countries (GCC).
The GCC includes countries such as Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates and Oman.
Rawabi Holding has been operating in Saudi Arabia and the Middle East for over 30 years as one of the leading industrial players in the region.
The company has activities in the construction and engineering, oil & gas, petrochemicals, utilities, power and electrical, telecommunications and IT, freight forwarding, marine, trading and manufacturing industries.
“We are forging an alliance with one of the leading players in the market to develop our respective businesses in the GCC,” said Raymond Goh, executive chairman and group chief executive officer of Swiber.
The MOU, which is for the period of 12 months, was made possible by International Enterprise (IE) Singapore, the agency under the Ministry of Trade and Industry tasked to promote the internationalization of Singapore-based companies and trade.
As part of the MOU, the two parties have agreed to evaluate the merit of each business opportunity and determine the best form of association and leadership arrangement for each potential project within the GCC.
Said Goh: “We believe that this arrangement will maximize our chances of securing a contract in a bidding process as it allows both Swiber and Rawabi Holding to capitalize on our respective areas of expertise and strength. Our main guiding principles will be based on setting up a tangible business plan and feasibility study, and thereafter determine the best form of association, and formally concluded in a pre-bid agreement.”
Swiber Holdings posted a second quarter revenue of $124.5 million, up from $25.3 million for the April to June quarter of last year, as the offshore construction services provider expanded its operating fleet.
Net profit rose to $22.2 million, up from $6.2 million a year ago, for the three months ended June 30, 2008. – Agencies