Sulzer and Unaoil Sign Joint Venture Agreement
On November 21, 2014, Sulzer signed an agreement to form a joint venture with the Unaoil Group dedicated to the service of all rotating equipment for oil and gas, and power customers in Southern Iraq.
The joint venture (JV) will operate under the name of Sulzer Rotating Equipment FZCO and will have offices in Dubai, with local operations and a branch in Southern Iraq. The JV builds upon the established cooperation between Sulzer and Unaoil serving customers successfully in Southern Iraq.
Sulzer and Unaoil have already cooperated in establishing a local 1,500 m2 rotating equipment workshop on the Rumaila Concession Area. Rumaila, in Basra province close to Kuwait, is a major oilfield in a central location of the country’s oil producing south. It is considered the third largest oil field in the world and is estimated to contain 17 billion barrels, which accounts for 12% of Iraq s oil reserves estimated at 143.1 billion barrels.
Over the past months, Sulzer and Unaoil have considered in detail the risks and opportunities involved and developed robust plans to ensure employees and business interests are adequately protected.
Sulzer will provide field service, maintenance, and overhaul services for all rotating equipment including pumps, turbines, compressors and electric motors. Seeking a single-point solution, Unaoil decided to work with Sulzer—the leading provider of services for rotating equipment—to provide all such services locally with a single technical partner.
Through this joint venture, Sulzer will have a unique opportunity to become a major player in Southern Iraq’s market for the service of all Rotating Equipment, whilst contributing materially through Unaoil to Iraq’s local training, investment and industrial capability.