Mubasher: Switzerland’s ABB and Saudi Arabia's Arkad Engineering and Construction on Tuesday inked an agreement to form a joint venture to execute engineering, procurement, and construction (EPC) projects in the oil and gas industry.
ABB’s current oil and gas EPC business will be transferred to the new company in which Arkad will acquire the majority stake, Arkad revealed in a statement.
The deal is projected to be closed in the coming months after receiving the “customary approvals” and the determination of the final details, the Saudi company stated.
“The joint venture is in line with our strategy to continuously optimise our portfolio while increasing customer focus,” said Peter Terwiesch, president of industrial automation division at ABB.
“While our oil and gas EPC business will be transferred to the new joint venure, ABB will continue to serve the oil, gas and chemicals sector globally with its industry-leading automation, electrification and digitalization solutions,” Terwiesch added.
Named Arkad-ABB, the new company will provide a full range of EPC services for oil and gas plants including project management, process engineering, and multi-disciplinary detailed engineering, Arkad revealed.
"This transaction is a major milestone for Arkad as we seek to expand our global footprint. It gives us access into exciting new markets, including Algeria, Kuwait, Italy and Abu Dhabi,” said Hani Abdulhadi Arkad’s managing director.
Following the closing of the deal, Arkad-ABB will be headquartered in Milan, Italy with ABB’s oil and gas EPC employees and management.
