Anil Ambani led Reliance Defence and Engineering signed agreement with Allrig which is a US based company for service support of onshore and offshore installations covering regions of Southeast Asia which, including India. With this agreement in place, Reliance Defence and Engineering’s shipyard at Pipavav (Gujarat) will enjoy the status of being a one stop solution for service needs of corporates and upstream companies in India which requires inspection, repair, dry docking, overhaul, upgradation, rectification, maintenance and spare services. The estimated market size in India is about Rs.7000 crore, the company said.The company statement also confirmed that the strategic association between both the giants would introduce multifarious benefits such as availability of high end services at competitive costs and lower turnaround time for the upstream companies operating at big scale in India with respect to jack-up rigs, drilling rigs and other floating/fixed oil and gas assets.
Another benefit of the partnership is that now the company will be in the position to offer solution for spares, repairs, up-gradation and warranty support for critical equipment for the old assets where original equipment manufacturer support is not available, or 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 the companies through this partnership are trying to target and tap various opportunities existing in India and South-East Asian region. However, the association will particularly aim at ONGC and other regional drilling contractor community.
Reference link: http://www.moneycontrol.com/news/business/reliance-def-allrig-partner-for-upstream-segment-solutions_7594561.html