Al Jaber extends its reach in oil and gas construction
Acquires a majority equity stake of 70% in Global Process Systems
Abu Dhabi headquartered Al Jaber Group said it has acquired a 70% equity interest in Global Process Systems Inc. Group (GPS). The acquisition is considered synergistic and strengthens the market presence and business opportunities for both enterprises, it said.
The acquisition provides Al Jaber Group with greater reach into the oil and gas construction sector, through GPS’s involvement in upstream and mid-stream oil and gas processing equipment and electrical and instrumentation installation. GPS’s business will be strengthened by the introduction of Al Jaber’s construction experience and financial capacity.
GPS president, Clint Elgar believes the introduction of Al Jaber Group as a shareholder and business partner will enable GPS to successfully complete the next phase of the group’s development. The timing of the acquisition is particularly opportune as the oil and gas sector is on the verge of substantial investment during the next five years.
“There are significant opportunities for GPS in the Middle East, former Soviet Union, Africa and Asia-Pacific. With Al Jaber, GPS will be able to increase its market share in the provision of technology based process solutions, comprising design, manufacture, installation and after-sales support. We are also contemplating entry into the build and lease market for early to mid-permanent production systems,” said Elgar.
Obeid Al Jaber, chairman of Al Jaber Group, said he believes there are excellent synergies and opportunities for growth with the existing Al Jaber businesses. “This relatively young company has tremendous growth potential. The drive and commitment from the senior management of GPS and its affiliates, Innovative Technologies and Cladtek, combines well with the entrepreneurial spirit of Al Jaber Group. The company has entered an exciting phase of its development and Al Jaber is pleased to be a part of this development. The global nature of GPS’s business activities and its international client base will provide a platform for the continued expansion of Al Jaber Group’s international business activities,” he added.
Al Jaber Group is a diversified conglomerate, comprising primarily construction and manufacturing activities. Its construction activities include earthworks, civil, mechanical and piping, roads and bridges, commercial and residential buildings. An extensive equipment fleet, large human resource pool, extensive fabrication capabilities and repair and maintenance workshops support these construction activities.
Global Process Systems is an EPC contractor focusing on upstream and midstream oil and gas process equipment. It provides technology based process solutions and is currently bidding for major projects in Abu Dhabi, Oman, Qatar, Indonesia, Malaysia, Russia, Kazakhstan, Iraq, Iran, Sudan, and Yemen.