North-east oil-field services company Romar International is expanding into the Middle East.
The Newburgh-based company announced yesterday it had signed a two-year deal with Step Oiltools to sell its products in the region.
It follows on from the success of a similar agreement between the two companies to promote Romar’s offering in south-east Asia.
Romar says the agreement, signed in late 2012, had boosted its sales in the region by 95% and, as part of the contract, two successful jobs, worth an estimated £750,000, in north-west Australia and Brunei were recently completed.
At the time, Romar said it expected the contract to generate about £325,000 a year.
The new Middle East contract will target Oman, United Arab Emirates, Saudi Arabia, Kuwait, Bahrain, Qatar and Iraq.
The company declined to put a value on the contract but said it anticipated the value would mirror that achieved by the south-east Asian deal.
Romar’s core business is providing magnetic separation products and services to the offshore oil and gas industry.
The company’s commercial director, Robbie Gray, said: “Our agreement with Step Oiltools in south-east Asia has been exceptionally beneficial. It has increased our presence in the region and has supported the significant increase in sales in the past year.
“Extending our agreement with our agent will enable us to penetrate the Middle East, where demand for our products, which remove swarf waste produced from downhole activities, is high and is a key part of our international business strategy moving forward.”
The south-east Asia deal will be extended in early 2014 to cover 2014-15.
“There are already a further two jobs confirmed for 2014 in south-east Asia as part of this agreement, and we expect to add to this number in the coming months,” Mr Gray said.
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