ZPEB International

Ever since ZPEB Saudi Arabia subsidiary was founded in 2001 when the first drilling rig from ZPEB was just mobilized to the country, it has been developed to become the third biggest contractor in Saudi Arabia with 17 drilling and workover rigs, which has contributed much to the sustainable development of ZPEB. In order to serve further development... of ZPEB Saudi Arabia subsidiary and exchange experience in the management of overseas companies, ZPEB International held a symposium on Mar 27th 2007 on the legal environment of ZPEB Saudi Arabia subsidiary. The symposium was organized by the legal department, and attended by directors and staffs from the relevant departments, including but not limited to Wang Jinzhong, drilling superintendent from ZPEB Saudi Arabia project, Ma Guofang, section manager in charge of labor affairs, Chen Fuxiao, financial manager, Yu Rui, section chief in charge of foreign trade, Li Yahui and Lei Zhenbin, section chiefs in charge of contracts, who also made speeches at the symposium. Li Yahui explained in detail the issue of transferring shares of ZPEB Saudi Arabia subsidiary from local partner to ZPEB as well as other existing legal problems. In accordance with the stipulations in the law of Saudi Arabia in 2000, any single-venture foreign enterprise was not allowed to incorporate in Saudi Arabia and thus a joint-venture enterprise called ZPADC was incorporated with a local partner by ZPEB in Nov 2001 so as to quickly enter the market and qualify for signing the drilling contract. ZPEB owns 75% shares and the local partner owns 25% shares in the company. In order to prevent the risk and legal problem from the operation of company, we took initiative in frequently negotiating with the local partner to transfer the most part of its 25% share to ZPEB, which should belong to ZPEB as all the equipment are from ZPEB. Once it is succeeded, we will fully diminish the risk from the joint-venture operation and safeguard the interest of ZPEB in the company as well as utilize the influence or ...Read More