Reliance Defence signs MoU with ALLRIG USA

Reliance Defence's Gujarat unit to be developed as one-stop shop for servicing needs of upstream companies

Reliance Defence and Engineering Ltd, a subsidiary of Reliance Infrastructure Ltd, on Friday said it has signed a memorandum of understanding (MoU) with ALLRIG USA for services in the oil and gas sector in India and the south-east region.

"The association would bring in the strategic advantages of high quality services at competitive costs and lower turnaround time to upstream companies operating in the Indian subcontinent with respect to jack-uprigs, drilling rigs and other floating or fixed oil and gas assets," Reliance Defence said in its statement.

The company added that under the new MoU, the company's facility in Gujarat would be developed as a one-stop shop solution for the servicing needs of upstream companies. These services include dry docking, inspection, repair, overhaul, upgradation, rectification, maintenance and spare services.

With this MoU, Reliance Defence and ALLRIG look to target opportunities from state-run ONGC Ltd and other regional drilling companies.

Reliance Defence has estimated a market size on Rs 7,000 crore for service activities in the oil and gas sector.

Earlier in the week, Reliance Defence announced a new venture with Dassault Aviation of France, the makers of Rafale fighters and Falcon business jets.

The Dassault-Reliance Aerospace joint venture is expected to be a key player in executing offsets obligations, as a part of India's purchase agreement for 36 Rafale fighter jets valued at 7.87 billion euros or Rs 59,000 crore, signed with France last month.