McDermott, Nakilat in offshore construction JV
- Business & Finance
Offshore construction and installation specialist McDermott will team up with Qatar’s Nakilat to provide offshore and onshore fabrication services in Qatar through a joint venture company.
The two companies have signed a JV deal which is set to boost productivity levels at Nakilat’s Erhama Bin Jaber Al Jalahma Shipyard. It will also target the development of 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 His Excellency Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, President & CEO of Qatar Petroleum, during the launch of the Tawteen program on Monday in Qatar.
Tawteen, launched by Qatar Petroleum is an initiative to enhance localizing the energy sector’s supply chain and expand the small and medium enterprises base in Qatar.
Nakilat said that its JV with McDermott is aligned with Qatar’s newly launched localization program, which is designed to enhance the resilience of the energy sector’s supply chain. In addition, the program aims at creating new investment opportunities within the energy sector, which will significantly contribute to Qatar’s economy, Nakilat said.
This new joint-venture comes at a strategic time, with Qatar’s ambition to localize its energy sector’s supply chain and increase its liquefied natural gas production from 77 to 110 million 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, Nakilat said.
JV operated from Nakilat shipyard
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-meter construction hall and a 180-meter 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,” Nakilat said.
Nakilat Chief Executive Officer Eng. Abdullah Al-Sulaiti said, “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. This venture comes as part of our strategy to diversify our 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 the establishment of the new joint venture would allow for better productivity and efficiency to be achieved at the shipyard and in supporting the localization and growth of Qatar’s oil and gas industry.
“In addition, it will ensure the transfer of knowledge and expertise to the local workforce and contribute towards the creation of a sustainable talent pipeline in Qatar, in alignment with Qatar National Vision 2030. 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.
“We are very pleased to see this joint venture come to fruition,” said Linh Austin, McDermott Senior Vice President, Middle East and North Africa. “This extension of our longstanding relationship with Nakilat is a natural continuation of McDermott’s history of successful project execution in Qatar and will enable both companies to utilize synergies and build on the combined strength of our respective organizations for the benefit of our customers.”