Anil Ambani-led Reliance Defence and Engineering on Friday announced an agreement with Allrig, a US-based service support provider for onshore and offshore installations, to tap a market estimated at Rs 7,000 crore in 10 years.
Reliance Defence and Engineering today announced an agreement with US-based Allrig for service support of onshore and offshore installations in Southeast Asia, including India.
Under the partnership, Reliance Defence and Engineering’s shipyard at Pipavav (Gujarat) would be developed as a one-stop-shop solution for all the service needs of upstream companies such as dry docking, inspection, repair, overhaul, upgradation, rectification, maintenance and spare services.
The RDEL-ALLRIG association would bring in the strategic advantages of high quality services at competitive cost and lower turnaround time to upstream companies operating in the Indian subcontinent with respect to jack-up rigs, drilling rigs and other floating/fixed oil and gas assets, a company statement said.
The association will be very helpful in providing solutions like spares, repairs, up-gradation and warranty support for critical equipments for older assets where original equipment manufacturer support is not feasible.
The estimated market size in India is about Rs 7,000 crore, the company said.
Commenting on the partnership with Allrig, 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 RDEL yard’s “excellent location and world class infrastructure along with Allrig’s superior capabilities will bring up synergies to provide high quality services.”
The partnership will aim to tap various opportunities in the Indian subcontinent and South-East Asian region. The association will particularly target ONGC and other regional drilling contractor community.