Arkema's unit CECA form JV with Saudi's Watan for oilfield chemicals

CECA, Arkema’s filtration and adsorption subsidiary, and Saudi company Watan Industrial Investment have set up a joint venture, majority-owned by Arkema, which will operate an oilfield production chemicals blending plant and storage facility in Saudi Arabia. Based within the Dammam industrial city, the new site will enable CECA to meet the high demand for oilfield production chemicals in the Gulf region.
 
This investment in the Middle East, following the organic peroxides investment announced last October, further illustrates Arkema’s objectives to develop its High Performance Materials segment while reinforcing its presence in fast-growing countries, where the Group aims to conduct 30% of its business by 2016.
 
Oilfield production chemicals represent a strategic activity - with a strong growth - for CECA which supplies oil companies in Africa and the Middle East, but, to date, had no commercial or industrial presence in Saudi Arabia.
 
As per the partnership agreement, the joint venture will acquire a storage and blending facility in Dammam, scheduled to become operative in the second half of 2014. The site will enable CECA to establish a long-term presence in the Gulf region and in particular in Saudi Arabia, which has one of the world’s largest conventional oil reserves. Thanks to these facilities, CECA will also be able to offer its customers local service and prompt response to fulfil the specific requirements of their oilfields.
 
“The oilfield production chemical market is growing at a steady rate of 5% per year, and the Middle East is one of the most dynamic regions. This partnership in Saudi Arabia offers us an ideal opportunity to serve the region’s major producers, and will enable us to capitalise on local growth. With this new site located in a strategic region, we aim to become a major player in the region,” said Marc-Antoine Mallet, Managing Director, CECA.
 
CECA's oilfield production chemicals offering comprise a full range of products including demulsifiers and corrosion inhibitors.