KS Energy, Empresas ICA to set up JV

MAINBOARD-listed oilfield supply and services provider KS Energy is tying up with Mexican conglomerate Empresas ICA to set up a joint venture, which will provide drilling services and heavy capital equipment for Mexico's offshore oil and gas exploration market.

The two firms signed a memorandum of agreement to establish the venture, KS Energy said yesterday. The joint venture entity will be jointly owned by ICA and KS Drilling, an 80 per cent owned subsidiary of KS Energy.

The venture is expected to initially require two new high specification jack-up drilling rigs valued at about US$240 million each, KS Energy said.