The JV will be for a period of 10 years from the commencement date
Oilfield services company Allis-Chalmers Energy has signed a joint venture agreement with the Rawabi Holding Company determining the terms and conditions for the formation of the Rawabi Allis-Chalmers Company. The newly formed company will be registered under the laws of Saudi Arabia.
According to the company, the purpose of the joint venture company is to provide a full array of oilfield services and rental equipment including, but not limited to, drill pipe, Hevi-Wate, BOPs, auxiliary handling tools, directional drilling services, and drilling and completion services in Saudi Arabia.
Rawabi and Allis-Chalmers will each own 50% of the issued and outstanding stock of the company and will nominate three individuals to the board of directors.
Rawabi will nominate the chairman of the board of directors and Allis-Chalmers shall nominate the vice chairman. The term of the joint venture agreement will be for a period of 10 years from the commencement date.
Munawar Hidayatallah, chairman and CEO of Allis-Chalmers Energy, said: I am excited with the opportunity to work together with the owners and management of Rawabi Holding who I consider to be a successful provider in oilfield services and equipment in Saudi Arabia.