UAE: Gulf Capital Acquires 50% of Gulf Marine Services

Tuesday, 03 April 2007

ABU DHABI: Gulf Capital, a leading regional alternative investment firm, announced that it has acquired a 50 percent stake in Gulf Marine Services LLC (GMS), one of the largest jack-up barge and support vessel operating companies in the UAE with presence throughout the Gulf.

Commenting on the acquisition, Dr Karim El-Solh, chief executive officer of Gulf Capital said: "Gulf Capital has been actively targeting investments in the booming regional oil and gas industry. GMS is a recognized leading operator of jack-up barges in this fast-growing sector in the UAE and is well on its way to becoming the dominant player in the Gulf region. The GMS transaction is the latest in a string of acquisitions that allows Gulf Capital to capitalize on the unprecedented growth in the off-shore oil and gas sector."

The current and forecasted strong demand for oil and gas has put pressure on national and international oil companies to increase offshore exploration and production activities. It is estimated that $ 55 billion will be invested in this sector in the Mideast over the next five years. This will lead to a significant increase in offshore drilling activities which will result in a surge in Jack-up drilling rigs utilization rates and daily rates to an all time high.

The increase in drilling activity will need to be complemented with an increase in well maintenance programs to maintain production levels of existing wells. While Oil Operating Companies generally rely on drilling rigs to perform well intervention services, they are seeking more efficient and cost effective solutions to perform this work and reduce reliance on drilling rigs. The self propelled Jack-up service barges represent an ideal solution for performing the well intervention services as they can be operated at a fraction of the daily rates of the drilling rigs. It is estimated that the demand for such solutions barges will double over the next five years in the GCC region and GMS is well positioned to capitalize on this trend.

© The Saudi Gazette 2007