Kentz seals Iraq venture deal with Dubai's Dome
CLONMEL-headquartered engineering group Kentz has inked a joint venture deal with Dubai-based technical services firm Dome with a target of securing contracts in Iraq by the end of this year.
Kentz, which provides engineering services to clients primarily in the oil, gas and mineral resources industries, is taking a 49pc stake in Dome's Iraqi energy equipment supplying unit. It did not reveal the purchase price but it's believed to be a nominal amount. Dome supplies the equipment to energy sector companies throughout the Middle East.
Speaking to the Irish Independent, Kentz chief executive Hugh O'Donnell said that the Iraqi market presents an enormous opportunity for the company.
"The Middle East has been our core business for a very long time. There's a significant spend under way there of about $212bn (€160bn) on oil and gas projects.
"That excludes the $100bn (€75.6bn) under way in Iraq. That's what we're following."
Iraq, which was devastated by war, has the third largest proven oil reserves in the world. Twelve contracts were signed with international oil consortia in 2009 by the government, and these are expected to add 10 million barrels of oil per day to Iraq's existing production of 2.5 million barrels per day by 2017.
Kentz and Dome are working together on the design and construction of an onshore production facility in Yemen for an international oil company.