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ENERGY EXPLORATION BOOST

Taqa and Halliburton Multi-Chem officials at the signing ceremony.

Saudi firm, Halliburton ink chemical plant JV

AL KHOBAR, February 1, 2015

Saudi Arabia-based Industrialisation & Energy Services Company (Taqa) has entered into a joint venture with Halliburton Multi-Chem to set up a chemical manufacturing plant in Jubail Industrial City in the kingdom.

The industrial complex will produce specialty chemicals related to the oil and gas and energy sectors, said Abdulrahman Bin Zarah, the president of Taqa after signing the joint venture agreement with Keith Barnard, the vice president of Halliburton Multi-Chem at a ceremony held on Sunday in the Taqa office in Al Khobar.

The complex will be located in PlasChem Park in Jubail Industrial City II, which is a collaborative effort between Sadara Chemical Company and the Royal Commission for Jubail and Yanbu (RCJY).

The new joint venture aims to support exploration and production operations in the Kingdom and offer chemical products needed by the local and Middle East markets, said Bin Zarah.

The construction work will start this year with production being planned in the fourth quarter of 2016, he said at the signing ceremony held in the presehce of Mohammed Y. Rafie, the chairman of Taqa and Ziad S. Al Labban, the CEO of Sadara.

The plant, he stated, will provide specialty chemicals to serve local and international oil and gas, water, and power sectors.
 
In his comments, Rafie said: "By signing this agreement with Halliburton, we are increasing Taqa's commitment and presence in the oil and gas sector in the Kingdom by adding local manufacturing capabilities and transfer technology in the oil and gas sector in Saudi Arabia."

Barnard said the agreement positions Halliburton Multi-Chem to have a world-class cost position in the heart of the $500 million-plus specialty chemical market of the Middle East.

"It also demonstrates our commitment to serve Saudi Aramco and other valuable customers in the region. This project should provide a safe supply of raw materials and increase the sales of chemical products both locally and internationally," he added.

Bin Zarah said the agreement forms a general framework for the construction of the plant that aims to transfer technology and provide specialised technical training and expertise to the Saudi workforce.

"Furthermore, the large group of chemicals that will be produced in the plant will enhance the role of the chemical industry sector and contribute to the establishment of more downstream investment projects in Saudi Arabia," stated the official.

Bin Zarah said with this deal, the company expected to become a major player in the chemical segment and create value with the benefit of Halliburton’s know-how and their best-in-class technologies and expertise.

"Additionally, it will enable Taqa to achieve one of its strategic goals, through extending the foundation of the national economy and supporting the efforts to diversify the Kingdom’s economy, contributing to the creation of direct and indirect jobs created by these technical industries," he added.

Founded in 2003, Taqa is one of the largest companies serving the areas of energy in the Kingdom, and it has a wide range of specialised activities, which include the provision of a survey for seismic exploration, geophysical studies, and the drilling of land and sea for the extraction of oil and gas.-TradeArabia News Service




Tags: Taqa | Saudi | Halliburton | chemical plant |

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