PACC Offshore Services Holdings Ltd., an offshore vessel provider also known as Posh, has entered into a joint venture with a Saudi company, in order to deeper penetrate the Middle East market.
According to Posh, the joint venture with Saudi Arabia’s Hmood Al-Khalaf Group, is in line with the Group’s strategy to bolster its presence the Persian Gulf, which has been identified as a key growth market amid ongoing global volatility in the oil and gas sector. As part of the joint venture deal, the two firms have incorporated a firm called POSH Saudi Company.
Posh already has several vessels, including platform supply vessels and light construction accommodation vessels, on long-term charters operating with a Saudi Arabian national oil company. Through the new JV, Posh will further increase its investments and operations in Saudi Arabia, the company said.
Providing rationale for the deal, Posh said it hoped it would benefit from Hmood Al-Khalaf Group’s extensive business networks in the Middle East
Posh Chief Executive Officer Gerald Seow said the Middle East offered substantial growth opportunities despite the challenges faced by the oil and gas industry globally.
“Since we signalled our intention to penetrate the region in April, we have deployed two more vessels to the Persian Gulf. With the experience and extensive network of Sheikh Hmood Al Ali AlKhalaf and the Al-Khalaf Group, we are confident of further accelerating our growth in the region and cementing our presence in Saudi Arabia.”
Hmood Al-Khalaf Group Founder Sheikh Hmood Al Ali AlKhalaf said: “We are pleased to partner with Posh to provide enhanced offshore marine services in the region. With our joint strengths and expertise, we will be able to generate synergies to undertake more complex projects to the benefit of all parties.”
That Posh’s joint venture making strategy pays off, speaks the fact that the company’s other JV, Posh Terasea, this week announced it had won a contract to provide towage and positioning services for the Shell Prelude floating liquefied natural gas (“FLNG”) platform – the world’s largest offshore facility ever constructed.