Kunlun Digital Technology Co Ltd, backed by the China National Petroleum Corporation, and eWTP Arabia Capital (eWTPA), a venture fund backed by marquee investors including Saudi Arabia’s PIF, signed a memorandum on cooperation (MOC), aimed at accelerating the digitalisation process of petroleum, gas and energy organisations in the MENA region
The first digital transformation project that the venture will undertake is in Saudi Arabia.
The MENA region is recognised as a leader in oil & gas reserves, and the advancement of the energy sector is giving rise to significant demand for digital and digitalisation solutions. Saudi Vision 2030 also calls for significant investment into technology adoption in and by the energy sector, contributing towards the digital economy as envisioned by the national strategy.
Fueled by Kunlun Digital and eWTPA’s industrial expertise and strong regional experience, the joint venture is expected to reach revenues of US$2bn in just the next 8-10 years. According to the terms of the MOC, the joint venture will utilise both Kunlun Digital's technological capabilities and eWTPA’s resource network in the MENA region to import and localise cutting-edge technical solutions. The global sourcing of local solutions will accelerate the technological transformation within Saudi Arabia's energy industry and also enable efficiencies in the production process in oilfields.
Managing partner of eWTPA, Jerry Li said, "This project once again cements our role in bridging Chinese technologies with local demands and demonstrates our strong confidence in KSA. We would love to work with more Chinese companies like Kunlun Digital, to empower energy sector and enable digital transformation in the kingdom and the region."
Affiliated to China National Petroleum Corporation, Kunlun Digital is an IT solution provider with more than 20 years of experience in the global petroleum and gas industry. eWTPA is a growth-stage venture fund based in Saudi Arabia and China backed by the sovereign wealth fund of Saudi Arabia, Public Investment Fund (PIF). Both parties bring complementary resources and advantages to the venture, which builds on the growing bilateral relations between China and Saudi Arabia, aligned with China's Belt and Road initiative and Saudi Arabia's Vision 2030.