Suhayl Abdul Mohsin Al Shoaibi & Sons Holding Company Limited and its affiliates (Shoaibi Group) and Xtreme Coil Drilling Corp. and its affiliates Xtreme Coil entered into a collaboration related to developing new business in the Middle East and North Africa, the company said in a statement Saturday. The business collaboration will guide the creation of joint venture companies to promote and provide certain Xtreme Coil contract drilling services and products through Shoaibi Group's strong operations and market expertise in Saudi Arabia and Algeria targeting national oil companies and their global affiliates as well as to other companies operating in Saudi Arabia, Bahrain and Algeria. Xtreme Coil will own 80 percent and Shoaibi Group will own 20 percent of the new companies. Shoaibi Group and Xtreme Coil announce the formation of the first joint venture, Xtreme Coil Drilling Saudi Arabia Ltd. The parties to the joint venture agree to work on an exclusive basis to provide mutual benefit by introducing and engaging Xtreme Coil's contract drilling services to exploit current and future opportunities with respect to oil and natural gas development projects in Saudi Arabia. The joint venture addresses a number of principles regarding structure of the new companies, funding and accounting, governance, change of control, technology licensing, services related to drilling equipment, potential drilling contracts and performance criteria, timetables, confidentiality, and compliance, among other matters.
