Senaat, UAE’s industrial investment company said it agreed with Tubacex on terms of joint-venture tubular solutions through the acquisition of Nobu Group.
Nobu manufactures and repairs high precision machining tubular components. Tubacex, a manufacture of stainless steel and high-alloyed tubular products (tubes and accessories), and Senaat will jointly acquire Nobu, which has offices in industrial oil and gas hubs of UAE, Saudi Arabia and Norway.
With customers including Baker Hughes, Schlumberger, Emerson and Halliburton amongst others, Nobu has a skilled workforce of over 200 people.
H.E. Eng. Jamal Salem Al Dhaheri, CEO of Senaat, said: “Senaat’s new partnership with Tubacex is consistent with the company’s strategy of seeking to partner with global organisations to grow the UAE’s manufacturing base. As the country’s leading industrial holding company, we have a big responsibility to promote our chosen knowledge-based industrial sectors in line with Abu Dhabi Economic Vision 2030. Our new partnership also fits closely with our existing focus on the oil and gas industry and will add further impetus to our efforts to drive shareholder value, as can already be demonstrated by the acquisition of Nobu.”
Oil & gas services is a key business vertical for Senaat, which is invested in the sector through NPCC, a leading EPC services provider to the upstream Oil & Gas companies and more recently through Al Gharbia, a line pipe manufacturing company developed in partnership with Japanese partners JFE and MISI. Senaat also provides specialty cables through DUCAB.
Within the oil & gas sector, Oil Country Tubular Goods (OCTG) is a particular focus area for Senaat, as it is a key component of the oil & gas industry. Certain components have longer lead times, which can sometimes significantly affect the timings of EPC programs. For example, OCTG CRA seamless pipe has longer lead time compared to the supply of drill heads.
H.E. Eng. Jamal Salem Al Dhaheri, CEO of Senaat, explained: “We are keen to expand our oil & gas product portfolio to take advantage of the massive sector development programs recently outlined by ADNOC and several other NOCs in the region. These programs offer significant opportunities to UAE manufacturers, especially in OCTG, where the ability for oil companies to have ready and reliable access to such products is so key to the programs’ successful implementation.”