Swicorp acquires stake in Mosvold

Swicorp Joussour Company, a Saudi joint stock company capitalised at SAR2.67 billion (Dh2.6bn) managed by Swicorp, has taken a majority stake in Mosvold Middle East Jackup, a jackup drilling rig company.

The company, which will be operated by Mosvold Shipping Holding, has contracts with Maritime Industrial Services (MIS) for the construction of two Super M2 F&G jackup rigs, which are under construction at the MIS fabrication base and shipyard in Sharjah, and an option to acquire two additional rigs. These rigs are ideally suited for drilling operations in the relatively shallow waters of the Gulf.

Swicorp Joussour Company's strategic objective is to invest in energy and related sectors that can directly benefit from the Mena region's competitive advantages. Presently, the Middle East is the biggest and fastest growing jackup market in the world.

Joris Vreeburg, Senior Investment Manager at Swicorp, Private Equity, said: "Two drilling rigs have recently been ordered from UAE-based Maritime Industrial Services Co, with expedited delivery dates in December 2009 and March 2010, with an option for two further rigs. Construction of the first unit is under way."

He added: "Mosvold has a very successful track record, extensive experience in the drilling industry and has again demonstrated that it is able to attract top tier managers and investors. The oil and gas industry makes up the backbone of the Middle East's economy and this company will be able to tap into the region's demand for more offshore drilling rigs. The company will benefit from strong local knowledge combined with industry expertise from a small group of dedicated investors."

Swicorp has an extensive track record of pioneering transactions across the Mena region over the last 20 years. With the relocation of Swicorp's group headquarters to Riyadh, and its extensive network of offices in Tunis, Dubai and Algiers, a wealth of in-depth local knowledge is providing expertise.