Federal International, Weatherford enter strategic alliance

Singapore-listed engineering and procurement company Federal International (2000) Ltd announced Friday that it had entered into an agreement for a strategic alliance with US-based Weatherford Artificial Lift Systems, Inc. to tap equipment manufacturing and procurement opportunities in the oil and gas sector globally.

Federal said this strategic alliance would join forces to secure contracts in the oil and gas industry within key markets. In particular, Weatherford will assist Federal in its global expansion, including the United States. Other countries that the two companies have targeted for collaboration include China, Vietnam and Indonesia.

Weatherford Artificial Lift Systems Inc. is a wholly owned subsidiary of Weatherford International Ltd, one of the world's leading providers of equipment and services used for the drilling, completion and production of oil and natural gas wells.

According to Federal, the two companies also intend to collaborate in tendering for contracts in oil and gas projects. ?In particular, Weatherford will consider utilising the services of Federal's associated company, PT Gunanusa Utama Fabricators because of Gunanusa's infrastructure and experienced personnel in Indonesia, and its ability to provide competitive prices to Weatherford,? said Federal in a statement to the Singapore Stock Exchange.

Gunanusa is a leading Indonesian fabrication yard involved in executing large turnkey projects in offshore platform projects, container cranes, boilers and pressure vessels. The company is 20 percent owned by Federal. (robert)