SAUDI Arabia’s Rawabi Holding Company (RHC) has formed a joint venture with Singapore’s Swiber Offshore Construction Ltd (SOC) named Rawabi Swiber Offshore Construction Company Limited (RSOC).

A 50-50 joint venture company, RSOC will be based in Al-Khobar, Saudi Arabia, RHC said in a statement. Leveraging on the expertise of its joint venture partners, RSOC will provide services in the field of offshore construction and bid for engineering, procurement, construction, installation and commissioning (EPCIC) projects in Saudi Arabia and other GCC countries.
This strategic alliance of both shareholders will deliver significant results and in turn provide customers with turnkey solutions, the statement said. Swiber Offshore Construction has the capability to undertake work as an integrated offshore EPCIC contractor with supporting in-house offshore marine capabilities under its Offshore Support Services.
RHC, having been in operation in Saudi Arabia and the Middle East for the last 30 years, is one of the region’s leading suppliers of specialised technical services and products to the oil, gas and petrochemical industries. RHC has activities in the construction and engineering; oil and gas; petrochemicals; utilities; power and electrical; telecommunications and IT; freight forwarding; marine; trading and manufacturing industries.
Recognising the importance of GCC and in particular Saudi Arabia as the key oil producer in terms of production capacity and reserves, as well as the huge offshore capital expenditure forecasted for the region, RSOC will tap on RHC’s extensive network within GCC and especially Saudi Arabia. It will also leverage Swiber’s capability and capacity to undertake work as an integrated offshore EPCIC contractor with supporting in-house offshore marine capabilities.
RSOC will initially focus on offshore EPCIC work in the Saudi Arabian region before branching out to GCC. Under the joint venture, it is also part of the plan to own and operate a state-of-the-art purpose built derrick lay barge to be known as DLB Aziz that will be dedicated to projects within GCC. To effectively meet the specific needs of projects, RSOC will seek collaborations with procurement and construction partners that will guarantee the best turnkey solutions to its customers.
According to the statement, RSOC shall cover the following scope of services: project management and execution of EPCIC projects; transportation and installation of fixed offshore platforms; transportation and installation of subsea pipelines; Calm Buoy (Catenary Anchor Leg Mooring); mooring installation services; basic and detailed engineering; provision of offshore support vessels; provision of diving support vessels; subsea support services including saturation diving services; platform construction and platform de-commissioning.
In addition, both parties expect synergies to arise from the strategic partnership which will allow them to combine resources, skill sets and market contacts to enhance revenue and earnings growth by cross-offering products and services.
Meanwhile, RHC has invested in Bahrain-based Energy Capital Group Ltd (ECG) in an over $100 million deal.
ECG is an international investment company that was established last year to specialise in investing in the energy sector in oil and gas, and petrochemicals.
ECG recently closed its first deal to acquire United Safety Ltd of Canada, a leading international provider of specialised equipment and safety standards for the energy industry. This deal was in partnership with Morgan Stanley Principal Investments (MSPI) and Lee Whittaker, United Safety’s chief executive officer in addition to other investors mainly RHC, AA Turki Group of Companies (ATCO), Abdul Razzak M Q Al-Ansari, and Al Muhaidib Group.
Although the deal sale price wasn’t released, it was announced that the Bank of Nova Scotia and Roynat Capital have provided the debt financing for this deal.
RHC has also partnered with Houston-based Allis-Chalmers Energy, a well-known multi-faceted Oilfield services company to establish a new joint venture company where each will own 50 per cent and will nominate three individuals to the board of directors.