Nakilat and McDermott are establishing a 60:40 joint-venture (JV) company that provides offshore and onshore fabrication services in Qatar.
In this regard, they yesterday entered into an agreement to seal a strategic partnership, which aims at increasing productivity levels at Nakilat’s world-class Erhama Bin Jaber Al Jalahma Shipyard and developing local construction capabilities to support the increasing demand for the construction of offshore and onshore structures in Qatar.
The agreement was signed in the attendance of HE Saad bin Sherida al-Kaabi, Minister of State for Energy Affairs, President and Chief Executive of Qatar Petroleum, during the launch of the Tawteen programme on Monday.
The establishment of the new joint venture is aligned with Qatar’s newly launched localisation programme, which is designed to enhance the resilience of the energy sector’s supply chain.
In addition, the programme aims at creating new investment opportunities within the energy sector, which will significantly contribute to Qatar’s economy.
This new joint venture comes at a strategic time, with Qatar’s ambition to localise its energy sector's supply chain and hike its liquefied natural gas production from 77mn to 110mn tonnes per annum in the coming years.
This project will provide a range of new services that will support Nakilat and its joint ventures to undertake the construction, maintenance, repair and refurbishment of offshore and onshore structures, and all types of vessels.
The joint venture will be operated from Nakilat’s shipyard in Ras Laffan Industrial City. With extensive fabrication areas and excellent facilities such as a 270-metre construction hall and a 180-metre assembly workshop featuring four bays, the venture will be able to service the growing demand for offshore and onshore modular construction locally in Qatar.
In addition, the JV will be able to leverage on McDermott’s renowned expertise in the field of onshore and offshore construction and Nakilat’s wealth of experience in providing fabrication services to Qatar’s oil and gas industry.
“We are proud to be partnering with McDermott, who are leaders in the field of EPCI projects, as part of our business diversification strategy and to better support the country’s ambition to be one of the leading energy producers and exporters in the world," according to Nakilat Chief Executive Abdullah al-Sulaiti.
This venture comes as part of its strategy to diversify the portfolio, which will contribute towards the advancement of the Qatari economy and support the country’s ambition to be the leading exporter of clean energy, he said.
"This will further complement our existing range of maritime services being offered as part of developing a local maritime hub, reinforcing our position as a global leader and provider of choice for energy transportation and maritime services,” he added.
Linh Austin, McDermott Senior Vice President, Middle East and North Africa, said this extension of the longstanding relationship with Nakilat is a natural continuation of its history of successful project execution in Qatar and "will enable both companies to utilise synergies and build on the combined strength of our respective organisations for the benefit of our customers.”