- Oct. 28, 2016
-- Anil Ambani led Reliance Defence and Engineering signed an agreement with Allrig – a US based company that majorly provides service support of onshore and offshore installations covering regions of Southeast Asia which also includes India. Through this partnership, Reliance Defence and Engineering's shipyard at Pipavav (Gujarat) will enjoy the status of being one pit stop for upstream companies that require services such as inspection, repair, dry docking, overhaul, upgradation, rectification and maintenance. The estimated market size in India is about Rs.7000 crore, the company said.
The company statement also confirmed that this strategic partnership between both the companies will streamline multiple benefits in terms of availability of high-end services at competitive costs and decreased turnaround time to leading companies operating at big scale in India with respect to jack-up rigs, drilling rigs and other floating/fixed oil and gas assets. Apart from this, the company will be in the position to provide solution for spares, repairs, up-gradation and warranty support for equipment that are critical but are old assets where original equipment manufacturer support is not possible.
On the announcement of agreement between the two companies, Reliance Defence and Engineering CEO H S Malhi said, "The association with Allrig responds to a real time need of the industry of enhanced service provision in the upstream segment."
Another senior official of Reliance Group, A K Balyan, CEO, Oil & Gas Business, said "Reliance Defence and Engineering yard's excellent location and world class infrastructure, coupled along with Allrig's superior capabilities will bring up synergies to provide high quality services."
Both Allrig and Reliance Defence will try and tap various opportunities existing in the Indian subcontinent or in the South-East Asian region. However, the association will particularly aim at ONGC and other regional drilling contractor community.
Reference link: http://www.bloomberg.com/research/stocks/private/snapshot...