Listed Companies' Announcement
FEDERAL INTERNATIONAL (2000) LTD
PRESS RELEASE - FEDERAL INTERNATIONAL ENTERS INTO STRATEGIC AGREEMENT WITH WEATHERFORD ARTIFICIAL LIFT SYSTEMS, INC. TO TAP OPPORTUNITIES IN THE OIL AND GAS INDUSTRY
FEDERAL INTERNATIONAL ENTERS INTO STRATEGIC AGREEMENT WITH WEATHERFORD ARTIFICIAL LIFT SYSTEMS, INC. TO TAP OPPORTUNITIES IN THE OIL AND GAS INDUSTRY
Singapore, August 8, 2003 -- SGX Mainboard-listed Federal International (2000) Ltd ("Federal" or the "Federal Group") today announced it has 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.
Weatherford Artificial Lift Systems Inc. ("Weatherford") 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. Weatherford is the only company in the world capable of providing all forms of artificial lifts used in the production of oil and gas.
Through this strategic alliance, Federal and Weatherford will 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.
As part of this strategic alliance, the two companies 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, P.T. Gunanusa Utama Fabricators ("Gunanusa") because of Gunanusa's infrastructure and experienced personnel in Indonesia, and its ability to provide competitive prices to Weatherford. PT Gunanusa Utama Fabricators is 20% owned by Federal.
Weatherford on its part will provide its engineering and technical expertise to Gunanusa for projects jointly or independently secured by either company.
Furthermore, Weatherford shall promote, market and sell Federal's core manufactured products to major oil producers, drilling contractors and engineering companies in key oil exploration areas globally.
The Executive Chairman and CEO of Federal, Mr. K.K. Koh said: "We are delighted with Weatherford's confidence in us as a strategic partner. This strategic alliance represents a major step forward in our plans to expand both regionally and beyond. It will greatly enhance Federal's ability to advance our market position as an integrated procurement services provider in the oil and gas and petrochemical sectors. And it will increase our global market share for our proprietary products. We are particularly excited about the opportunities this strategic alliance may open up for us in the new markets."
The strategic alliance, which does not involve any initial investment or commitment, is not expected to have any material impact on the consolidated earnings per share and net tangible asset per share of the Company for the current financial year.
None of the Directors or substantial shareholders of Federal has any interest, direct or indirect, in the above said agreement.
About Federal International (2000) Ltd.
Federal is principally involved in the distribution of flowline control products (including valves, structural steel, steel flanges/connectors and pipe fittings) to the oil and gas, power, chemical and pharmaceutical industries. By moving upstream into the design and manufacture of specialized valves and related products, Federal aims to be an integrated service provider and procurement specialist in the energy and infrastructure industries offering a complete one-stop service package.
For the financial year ended December 31, 2002, Federal posted a strong net profit of S$2.4 million on a turnover of S$96.1 million.
About Weatherford Artificial Lift Systems, Inc.,
Weatherford Artificial Lift Systems, Inc., is one of the subsidiaries/divisions of Weatherford International Ltd. Weatherford International Ltd is listed on the New York Stock Exchange (NYSE symbol: "WFT") with a current market capitalization of US$6 billion, with 15,000 employees spanning over 100 countries. It is one of the world's leading providers of equipment and services used for the drilling, completion and production of oil and natural gas wells. It has approximately 540 service and sales locations in nearly all of the oil and natural gas producing regions in the world.
Issued on behalf of Federal International (2000) Ltd
For more information, please contact:
Stratagem Consultants Pte Ltd
Gwen W Ling
August 8, 2003
Submitted by Koh Kian Kiong, Director on 08/08/2003 to the SGX