Saudi Arabia’s extraordinary crude oil capacity is a magnet for investment.

A wise choice of partner
Technically partners

These days, Rawabi Holding is
a gateway for foreign engineers into the Saudi market. Abdulaziz Ali AlTurki, the Group Chairman & CEO, has signed partnership agreements with more than 65 international firms as their sole agent in the Kingdom. In addition, Rawabi has been working on long-term projects with 25 partners from different countries. This type of strategic alliance, particularly with British engineering firms, gives Rawabi an edge over domestic competitors. “We’re still expanding in the oil & gas sector and we aim to add more companies to our profile. We look forward to investing in the latest technology and attracting interest from the best-qualified companies in the world,” says Mr AlTurki.
One of the advantages of working with Rawabi is its forthrightness. Mr AlTurki is proud never to have had a case of arbitration in his roster of joint ventures. “Honesty, integrity, quality and customer satisfaction are our driving forces. If we shake hands on a deal, the deal is done,” he says.

With the Kingdom’s massive expansion of oil crude capacity, the trend will continue. In the Gulf alone, industry sources speak of 400 wells that need to be drilled at a single field site like Khurays, which is undergoing expansion. An estimated 20 rigs are necessary there to raise production targets to 1.2 million barrels. Water injection to maintain pressure, pipeline construction – it all requires engineering savvy.

“At Rawabi, we are planning to grow 25 per cent a year according to our five-year plan. The market is there, the only thing we have to do is explore,” says Mr AlTurki, who underscores that oil-related activities foster diversification. “That is why today you see the petrochemical industries here are massive and require state-of-the-art know-how from abroad.”

The technical partnership with Rowan Companies is a glowing example of the benefits a foreign company can obtain from allying with Rawabi Holding. The Houston-based contractor was awarded five offshore rigs for exploration and production only two months into its venture with Rawabi Holding. Each of the rigs is valued at $250 to $300 million. At a board meeting with Mr AlTurki in 2006, Rowan Companies decided to put more capital into the Saudi market. “Rowan Companies had not been active in Saudi Arabia for 25 years and were looking for a chance to come back,” says Mr AlTurki.