By Andy Sambidge
Joint venture signed for new centre to serve oil, gas, petro sectors in kingdom.
Technip and SaudConsult on Wednesday signed a memorandum of understanding to set up a 50/50 joint venture company aimed at developing a new engineering centre in Saudi Arabia.
Pending regulatory clearance, the new company, which will be based in Al Khobar, is expected to begin operations by mid 2010 with about 500 employees. The planned Engineering Centre of Excellence will be launched with a focus on front end engineering design (FEED), detailed engineering, procurement and construction management (EPCM) services serving the kingdom's oil, gas, petrochemical and other industries.
Thierry Pilenko, Technip chairman and CEO, said: "Our partnership will give us the opportunity to develop a world-class engineering centre in Saudi Arabia, with a strong local content and a high international profile.
"This move is in line with our Group's strategy to increase proximity to the Middle East market through the development of local operating centres."
D Tarek Shawaf, SaudConsult chairman added: "Our vision for this joint venture is to be the Engineers of Choice in Saudi Arabia and the region. Our new partnership will further enhance our endeavour to hire, train and retain young Saudi graduates and create an indigenous work force capable of contributing to the wealth and prosperity of our nation."