Tuesday, 12 March 2013
Eversendai Forms JV Company With Technics Oil & Gas Ltd
Eversendai Corp Bhd (ECB)has formed a joint venture (JV) company, Eversendai Technics Pte Ltd, with Technics Oil & Gas Ltd (Technics) and Eversendai Construction (S) Pte Ltd (ECSPL).
ECSPL is a wholly-owned subsidiary of ECB, an internationally recognised and established structural steel turnkey and power plant contractor.
In a statement Monday, ECB said the purpose of the JV company is to meet the growing demand for engineering, procurement, construction and fabrication services for the oil and gas industry.
Under the JV, Eversendai Technics shall have an initial issued and paid up capital of S$1,000,000 divided into 1,000,000 ordinaryshares.
The equity participation by ECB, Technics and ECSPL is 69.9999 per cent, 30 per cent and 0.0001 per cent, respectively.
The cost of equity participation by ECB and ECSPL in the JV of S$700,000 will be satisfied in cash from internally generated funds.
The JV will be managed by a Board of Directors consisting of four directors, of which three shall be nominees of ECB, and one nominee of Technics.
The JV aims to bid for projects in the oil and gas industry, which includes without limitation detailed engineering design, construction fabrication, building and upgrading of rigs, vessels, jackets, topsides, processing modules and other oil and gas facilities, mainlyin the Middle East.
Pursuant to the shareholders' agreement, parties will explore acquiring a plot of land in the United Arab Emirates for the purpose of constructing and operating a fabrication plant and facilities for offshore and onshore works.
"Eversendai Technics was created to leverage on Technics' and our joint established track records.
"We look forward to building a stronger market presence in the oil & gas fabrication sector in this region, as well as in those where we are already well-known for our structural steel works," said Eversendai Group Executive Chairman and Group Managing Director, Datuk A K Nathan.
He said the strategic partnership will enable Eversendai to secure a stronger foothold in the oil and gas fabrication sector, which is in line with its business plan to venture into inter-related sectors.
Nathan said Eversendai would not only benefit from Technics' established track record in the aforesaid sector, but also its expertise in compression systems and process modules.
These are expected to complement Eversendai's structural steel design, engineering and construction capabilities.
"We are very excited about the growth opportunity for this alliance and are confident that the joint venture with Technics will benefit and bring synergy to accelerate growth, enhance innovation and build a stronger brand in the Middle East market and where we have a presence," he added.
Technics was established in 1990 and specialises in the design and fabrication of complex and highlycustomised process modules and equipment.
It includes gas compression packages which are integrated to form the operating system for production operations and storage applications in both onshore and offshore oil and gas exploration and production activities.
Technics operates three waterfront yards and has offices in Singapore, Vietnam and Batam in Indonesia.
ECB is one of the most sought after structural steel turnkey and power plant contractor in the world, having served clients in over 12 countries. These include Malaysia, Singapore, Thailand, the Philippines, Indonesia, Hong Kong, India, Oman,Saudi Arabia, Bahrain, Qatar and the United Arab Emirates.