Lamprell forms a Joint Venture to expand operations in Saudi Arabia through the Shoaibi Group and AYTB

The Joint Venture, which will be based in Al Khobar in the oil rich Eastern province of Saudi Arabia, intends to establish a presence for new build fabrication, refurbishment and repair of land drilling rigs in Saudi Arabia, by combining Lamprell'sexpertise in this sector and Shoaibi Group's strong experience in the Saudi onshore and offshore market and AYTB's operational support facilities and multi-disciplinary workforce.

Lamprell Arabia Ltd. will offer new build fabrication, refurbishment and repair of Saudi land rigs, ancillary fabrication for onshore assets and services on Saudi offshore rigs, with the intention of opening a local workshop in the recently built Shoaibi Group Oil and Gas Park, located in the Industrial Village zone in Dammam, Saudi Arabia.

The Lamprell Group has been in partnership with the two entities for 11 years through the Maritime Industrial Services Arabia Co. Ltd. ("MIS Arabia") Joint Venture agreement which was established in 2001 to offer fabrication services for pressure vessels, columns and other specialised process equipment.

Shoaibi Group Director, Eng. Khalid SuhaylAl Shoaibi, said: "This is a landmark joint venture for the Shoaibi Group and we are all extremely pleased to enter into this joint venture agreement with Lamprell and AYTB. This joint venture builds on the strengths of the three companies to expand Lamprell's operations in Saudi Arabia and will further reinforce Shoaibi Group's market positions across our engineering and contracting services to the Saudi upstream industry. Saudi Arabia has an estimated 98 onshore drilling rigs in place and there is a rising demand for advanced drilling equipment and oilfield services in the upstream market, which justifies Lamprell's expansion into market at this time."

Nigel McCue, Chief Executive Officer, Lamprell commented: "Saudi Arabia presents strong opportunities for Lamprell in the onshore rig market. As we continue to strengthen our core competencies, this agreement builds on the Group's existing business in the country, furthering our long-term relationships with the two companies and leveraging our expertise in land rig services. We are particularly pleased to be signing this agreement with two prominent entities that are well recognised in the Kingdom, the Shoaibi Group and AYTB, whose knowledge of the Saudi Arabian market will complement Lamprell's technical expertise in the oil & gas sector."

AYTB Managing Director, Mr. Amr Bin Halim commented: "AYTB is very enthusiastic about the new joint venture combining the knowledge and expertise of three leading service and fabrication companies. AYTB will contribute to the success of the new JV with a great deal of market knowledge, solid organisation, operational support facilities on the East and West coasts of the Kingdom and, above all, a willing, multi-disciplinary and capable workforce."