Anil Ambani owned Reliance Defence & Engineering signed a partnership agreement with Allrig – a US based company for service support of onshore and offshore installations. This deal will cover regions of Southeast Asia including India. Under this partnership, Reliance Defence’s shipyard at Pipavav (Gujarat) would enjoy the status of being one pit stop for upstream companies that avail services such as inspection, repair, dry docking, overhaul, upgradation, rectification and maintenance. The statement confirmed that the estimated market size in India is about Rs.7000 crore.The company statement also affirmed that this partnership 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.
The best part is that Reliance Defence & Engineering would now be in the position to offer high-end solutions for spares, repairs, up-gradation and warranty support for equipment that are critical but are old assets where original equipment manufacturer support is not available, nor 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 & Engineering will try and tap various opportunities existing in India or in the South-East Asian region. However, the association will particularly aim at ONGC and other regional drilling contractor community.
Reference link: http://economictimes.indiatimes.com/news/defence/reliance-group-sews-up-accord-with-usas-allrig/articleshow/54737078.cms