Al Mojil Group sells marine services division for $53m
Saudi Arabia’s Mohammad Al Mojil Group Company has announced the sale of its Marine Services Division for $53m.
In a statement the company said it has agreed to sell the division to another Saudi company Jana Marine Services.
“The sale of the marine division is a principal component of an asset sale program established as part of MMGs restructuring plan agreed with its lenders group and approved by shareholders in extraordinary general meeting in November 2012,” read the statement from Al Mojil.
The group says the division’s principal activities are servicing the offshore oil and Gas facilities of Saudi Aramco on a contractual basis and the APA agreement with Jana marine signed last month is subject to Saudi Aramco agreeing to the novation assignment of the contract, which is currently under process and expected eminently.
MMG’s Marine Services Division is a key component of the group and has created a niche for itself in the shipping industry. It was the first Saudi company to offer a fully serviced fleet of vessels with dedicated equipment and skilled manpower to service Saudi Aramco's offshore projects.
Today MMG is serving a large number of clients; prominent among them are Saudi Aramco, Qatar Petroleum, Saipem, Barwill, National Petroleum Construction Company, J.Ray McDermott, Global Rushaid, Mcdowell Schlumberger.
JANA Marine Services was established to meet the growing demand of marine, industrial and safety equipment in Saudi Arabia and in the Middle East.
The head office is based in Dammam, Saudi Arabia and have affiliated offices in Dubai and China to meet customers’ requirements with full technical support and after sales service.