Swiss engineering conglomerate ABB is putting its turnkey projects arm for the oil and gas industry into a joint venture majority owned by Saudi Arabia’s Arkad Engineering & Construction.
After completion of the deal on December 1, 2017 the joint venture business will be rebranded as Arkad-ABB and is due to start operations on January 1 2018.
Arkad, which did not disclose the financial terms of the deal, has a current order backlog of around $2 billion and said the deal will not affect its current projects for Saudi Aramco, which include pipeline work related to the second phase of the Master Gas Programme and the Fadhili gas project.
“This transaction is a major milestone for Arkad as we seek to expand our global footprint,” Hani Abdulhadi, Arkad’s managing director, said. “It gives us access into exciting new markets, including Algeria, Kuwait, Italy and Abu Dhabi.”
Photo Courtesy of REUTERS/Arnd Wiegmann/File photo