(MENAFN - The Peninsula) Gulf International Services (GIS), the largest service group in Qatar with interests in a broad cross-section of industries, has signed a share purchase agreement (SPA) with Japan Drilling Co Ltd (JDC) to acquire all of JDC's 30 percent shareholding in Gulf Drilling International Ltd (GDI).
GIS shall own all of JDC's shares in GDI starting May 1, 2014, making GDI a wholly-owned subsidiary of GIS. The SPA was signed by H E Dr Mohamed bin Saleh Al Sada, the Minister of Energy and Industry and Chairman and Managing Director of GIS, Saad Sherida Al Kaabi, Director of Oil and Gas Venture of QP and GDI Chairman and Yuichiro Ichikawa, President of JDC.
Dr Al Sada said: "GDI is now established as a world-class onshore and offshore drilling contractor."
Yuichiro Ichikawa said one of the primary objectives of the joint venture was to transfer drilling rig technology and the capabilities of operating drilling rigs safely and efficiently from JDC to a Qatari company on a structured and sustainable basis.
GDI and JDC also signed a letter of intent that provides for the exchange of further technical cooperation between the two companies and the promotion of mutually beneficial business opportunities. The letter of intent was signed by GDI's CEO Ibrahim J Al Othman and Ichikawa.
Al Othman expressed his appreciation for the fine support that JDC had extended to GDI and said GDI was pleased to be able to continue its association with JDC, its former partner.
GIS Chief Coordinator Ebrahim Al Mannai said, "the fundamentals of the GIS investment to increase its stake in GDI were favourable. It should also be noted that this transaction will be 100 percent financed through an unsecured bilateral loan from local banks, obtained at competitive terms and conditions.