Suhayl Mohsin Al Shoabi and Sons Holding Company and its affiliates (Shoaibi Group) and Xtreme Coil Drilling Corp and its affiliates Xtreme Coil have entered into a collaboration related to developing new business in the Middle East.
The collaboration will guide the creation of joint venture companies to promote and provide Xtreme Coil contract drilling services and products through Shoaibi Group’s market expertise.
Xtreme Coil will own 20% and Shoaibi Group 80% of the new companies. The two firms have already announced the formation of the first joint venture, Xtreme Coil Drilling Saudi Arabia. The new firm will target contract drilling opportunities in oil and natural gas development projects in Saudi Arabia.
The joint venture addresses a number of principles regarding structure of the new companies, funding and accounting, governance, change of control, technology licensing, services related to drilling equipment, potential drilling contracts and performance criteria, timetables, confidentiality, and compliance, among other matters, reports the Saudi Gazette.
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