The Saudi Arabian marine support industry is set to receive a significant push forward with Zamil Offshore Co. announcing a newfound partnership with the Public Investment Fund (PIF). PIF has procured a 40% stake in the prominent offshore support vessel operator based in the Kingdom, signaling a boost for fleet expansion and service diversification.
In an official communication, PIF disclosed its acquisition, underscoring the intention to bolster Zamil Offshore’s capital structure. This move will facilitate the company’s ambition to augment its service offerings and fleet size to meet the escalating demand for offshore support, which is expected to include activities related to wind energy production eventually.
The investment by PIF is aligned with its broader ambition to foster growth within Saudi Arabia’s energy infrastructure. Bakr Al-Muhanna, the Transport and Logistics Sector leader for Middle East and North Africa Investments at PIF, remarked that the offshore support sector is of strategic importance to Saudi Arabia due to its integral role in fulfilling global energy requirements.
“Our investment in Zamil Offshore will fortify this essential sector and is part of PIF’s extensive efforts to nurture the Kingdom’s energy ecosystem,” Al-Muhanna added.
With its foundation laid in 1977, Zamil Offshore has a robust operational and managerial history, overseeing a fleet that exceeds 90 vessels within the Arabian Gulf. Additionally, the company is engaged in two joint ventures, Zamil Mermaid and SBS Oceanics, offering specialized subsea diving and offshore platform services, respectively.
Tawfiq Al-Zamil, the chairman of Zamil Offshore, expressed enthusiasm about the partnership with PIF, which he believes will mark a new chapter in the company’s growth trajectory, allowing it to diversify and extend operations catering to offshore projects across Saudi Arabia.
PIF has been a dynamic force in driving Saudi Arabia’s economic diversification efforts in recent times. This includes increasing its holdings in international entities such as Japan’s Koei Tecmo and Nintendo Co., along with a substantial stake acquisition in Middle East Paper Co., a key player in the MENA region’s paper production and recycling industry.