Reliance Defence, led by Anil Ambani, signed a partnership agreement with US based company Allrig for service support of onshore and offshore installations. This deal will cover regions of Southeast Asia including India. Due to this partnership, Reliance Defence & Engineering’s shipyard at Pipavav (Gujarat) will re-establish itself as one stop solution for service needs of upstream companies in India who require inspection, repair, dry docking, overhaul, upgradation, rectification, maintenance and spare services. The company also confirmed that the estimated market size in India is about Rs.7000 crore.
A company statement also confirmed that this partnership will introduce plethora of benefits that includes availability of high end services at cheaper costs and decrease in 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. Also, now the company will be in a state to offer solutions for spares, repairs, and up-gradation and warranty support for critical old equipment for which the original manufacturer support is not available or is completely out of question.
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 Reliance Defence & Engineering and Allrig will target and tap various opportunities existing in the Indian subcontinent and South-East Asian countries. However, the association will particularly aim at ONGC and other regional drilling contractor community.
Reference link: http://www.deccanchronicle.com/business/companies/071016/reliance-defence-allrig-partner-for-upstream-segment-solutions.html