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Khobar, January 29, 2015
The Industrialization & Energy Services Company (TAQA) and Halliburton Multi-Chem recently signed a Joint Venture Agreement, with the official signing ceremony held today in the offices of TAQA in Al-Khobar, Saudi Arabia. The JV will establish an industrial complex to produce specialty chemicals related to the oil and gas and energy sectors. The complex will be located in PlasChem Park in Jubail Industrial City II, which is a collaborative effort between Sadara Chemical Company and the Royal Commission for Jubail and Yanbu (RCJY).
With a new plant to be located in Jubail industrial city (Jubail 2), the new Joint Venture aims to support exploration and production operations in the Kingdom and offer chemical products needed by the local and Middle East markets. Project construction is expected to begin in 2015 with production starting in the fourth quarter of 2016. The plant will provide specialty chemicals to serve local and international oil and gas, water, and power sectors.
Eng. Abdulrahman Bin Zarah, President of TAQA, and Mr. Keith Barnard, Vice President of Halliburton Multi-Chem, signed the JV agreement, while Mr. Mohammed Y. Rafie, Chairman of TAQA, and Eng. Ziad S. Al-Labban, CEO of Sadara were in attendance.
"By signing this agreement with Halliburton, we are increasing TAQA's commitment and presence in the oil and gas sector in the Kingdom by adding local manufacturing capabilities and transfer technology in the oil and gas sector in Saudi Arabia," said Mr. Rafie
"We are pleased with this new Joint Venture with TAQA and to build this project in the Kingdom," said, Mr. Barnard. "This agreement positions us to have a world-class cost position in the heart of the US $0.5 billion-plus specialty chemical market of the Middle East. It also demonstrates our commitment to serve Saudi Aramco and other valuable customers in the region. This project should provide a safe supply of raw materials and increase the sales of chemical products both locally and internationally."
"The signing of this Joint Venture Agreement forms a general framework for the construction of the plant that aims to transfer technology and provide specialized technical training and expertise to the Saudi workforce," said Eng. Bin Zarah. "Furthermore, the large group of chemicals that will be produced in the plant will enhance the role of the chemical industry sector and contribute to the establishment of more downstream investment projects in the Kingdom. Additionally, it will enable TAQA to achieve one of its strategic goals, through extending the foundation of the national economy and supporting the efforts to diversify the Kingdom's economy, contributing to the creation of direct and indirect jobs created by these technical industries."
"We expect to become a major player in the chemical segment and create value with the benefit of Halliburton's know-how and their best-in-class technologies and expertise," concluded Eng. Bin Zarah.
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About the Industrialization & Energy Services Co. (TAQA):
Founded in 2003, (TAQA) is one of the largest companies serving the areas of energy in the Kingdom, and it has a wide range of specialized activities, which include the provision of a survey for seismic exploration, geophysical studies, and the drilling of land and sea for the extraction of oil and gas. Add to this the establishment of a number of industrial and service enterprises supporting the sectors of oil, gas and metals, petrochemicals, mining, and electricity and water, either directly or through the establishment of specialized companies. This is in order to aim to meet the needs of different types of companies. It is worth mentioning that (TAQA) is a joint stock Saudi company, of which the government owns 45% of its capital, while 55% of the capital and ownership is by a large segment that includes many of the joint stock companies in the Kingdom of Saudi Arabia, as well as industrial investors.
© Press Release 2015
