United Engineering Services LLC (UES) is one of the oldest oil field services companies in Oman. Its customers consist of all major oil and gas companies in Oman such as PDO, OLNG, Occidental, Halliburton, Schlumberger Weatherfold, MB Petroleum, Cameron Services, Daleel Petroleum, Dalma Energy, Shivani Drilling, MIDWESCO, PTTEP and Great wall Drilling etc. UES has essentially three business streams -- manufacturing, agency sales and drilling equipment services (DES). As part of the sale arrangement with Smith, at the time of 100 percent acquisition of UES, DES business will be spun off from UES to a separate new joint venture company. All existing and future contracts related to DES business will also be assigned to the new JV. The new company has been incorporated in Oman in the name of Smith International (Oman) LLC (SIOL), wherein Smith holds 53.75 percent and UES owns 46.2 percent of the shareholding. Smith, under a technical services agreement, will provide services such as proprietary tools, new technology, inventory management, second technical management and services personnel to SIOL whereas UES will provide the support services to the new entity.

Under the manufacturing business, UES owns and operates a large workshop in Ghala that provides machining and fabrication of specialized equipment used in the oil and gas industry. UES is licensed to manufacture and fabricate specialized thread connections for cutting threads for tubulars used in oil and gas wells. These licenses are very valuable, difficult to get, and usually given to only one company in any country. UES’manufacturing business has a large client base, most of them in oil and gas, that mainly utilizes UES’machine shop facility. The machine shop constitutes almost 60 percent of UES’manufacturing business. All major oil and gas related companies in Oman, including PDO, Occidental, Halliburton, MB Petroleum, Daleel, Weatherfold, Shivavni, Dalma, Cameron etc. are utilizing UES machine shop facilities for repairs, maintenance and manufacturing of various items such as OCTG accessories, crossovers, flow couplings, pub joints, casing works, pressure vessels etc. On the fabrication, blasting and painting activity, UES is working with many clients such as Gulfar, TOCO and STS which mainly deals with fabrication of tanks, vessels, piping, MSV skids and structures.

Under the agency sales business, UES provides commercial representative to a number of renowned international companies that manufacture and supply oilfield equipment, instrumentation and chemicals to the oil companies and the drilling industry. These sales are done on commission bases. This stream has four main areas -- oil and gas, instrumentation, water and equipment & services. Major clients include PDO, Oman LNG, Oman Gas Company, Occidental and the government ministries such as MHEW and MOD. UES also represents Siemens in Oman for industrial gas turbines for power generation.

UES currently employs 310 employees out of which 75 percent are Omanis.