OCEC and Xenel in JV talks

CNOOC Energy Technology & Services offshoot CNOOC Oilfield Construction & Engineering Company, (CNOOC OCEC) is involved in advanced talks with Saudi Arabia’s Xenel Industries to set up a joint venture for providing services to companies operating in the Middle East.

The two companies have largely agreed on the terms of the joint venture, which has recently won approval from CNOOC OCEC’s parent CNOOC. They are now finalising details of the joint venture contract, which is expected to be signed in a matter of months, sources said. China-based sources said Xenel’s interest in CNOOC OCEC relates to the latter’s low labour cost. The joint venture will largely target providing services to state-owned giant Saudi Aramco, sources added. Tianjin-based CNOOC OCEC provides integral services of offshore engineering design, construction and commissioning, but it is more specialised in providing services in offshore field maintenance and repair. It has subsidiary companies or offices in Shanghai, Shenzhen, Guangzhou, Zhanjiang and Ningbo cities. The tie-up with Xenel will be the first such joint venture for CNOOC OCEC. The Chinese company previously focused almost entirely on providing services to Chinese offshore fields owned by CNOOC.

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