(MENAFN- The Peninsula) Doha-based Petroserv Ltd, has announced its entry into the Australian liquefied natural gas (LNG) sector through an equity investment with Queensland-based Bothar Boring.
Through this investment, which results in the establishment of Petroserv International based in Brisbane, Australia, Petroserv Ltd will combine its long history and experience of contracting in the oil and gas and infrastructure sectors in Qatar with the similar sector expertise it has identified in the Bothar group.
The investment is the first significant one by a Qatari company in the Australian oil and gas market. Under the deal, which sees Petroserv acquire a 49 percent share in Brisbane-based Bothar Boring & Tunnelling, Petroserv plans to back its investment with more funding for greater expansion into Australia's gas sector.
The Petroserv International group of companies in Australia and the Asia-Pacific region will focus on oil and gas pipelines, engineering and fabrication solutions as well as below ground infrastructure, supported closely by the very successful micro-tunnelling business of Bothar Boring. A part of the metal fabrication work will be sub-contracted to Petroserv Limited here in Qatar.
Petroserv Ltd is a Qatari company which was started in 1978 to initially focus on metal fabrication for the oil and gas sector. The company later expanded into the civil and infrastructure sectors in Qatar. The new Petroserv group of companies will now use its international presence to reach out further afield with its contracting businesses.
Sheikh Sultan bin Jassim Al Thani, Chairman of the Board of Petroserv Ltd, said the two entitles had been in discussions for some time.
"After commencing a joint venture relationship in Qatar in the micro-tunneling sector and getting to know the management, their group strategy and capacity, we all realized that there was a logical outcome of an equity partnership in Australia, with the key focus on contracting in the oil and gas sector there."
Petroserv Ltd Managing Director Barry Miles, who heads up the contracting group in Qatar, said: "We have been extremely pleased with the outcome of the relationship with the Bothar team. What started as a micro-tunneling partnership in Qatar has now materialized into an international equity partnership, with both partners capitalizing on the other's strengths whilst targeting the LNG opportunities in Australia."
"The business strategy of the Petroserv Group has been focused on growth largely by investment into businesses complementary to the value chains already present in Petroserv Ltd. The Group has sought to commit to strategic partnerships as opposed to solely follow a joint venture model which may be successful but is always limited to the contracts jointly targeted.
"The Group is looking for a more holistic and internationally diversified growth strategy, supported by operational involvement with partners such as in Australia." said Andrew Wright, Head of Mergers and Acquisitions.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.