BH Global Marine says the company has entered into an agreement with three partners to establish a joint venture company engaged in providing marine-related services and products.

Under the terms of the deal, a joint venture company called Oil & Gas Solutions Pte Ltd with a paid-up capital of $1,245,100 will be incorporated in Singapore to carry out the operations.

BH Global will hold a 60% stake in the company with the partners holding the remaining 40%. The company’s contribution to the capital of this new company stands at $1,244,600 which will be funded through internal resources.

BH Global believes the proposed joint venture is beneficial to the company as it will allow the company to strengthen its presence in the marine servicing industry.

Under the JV deal, the company is obliged to contribute further capital in Oil & Gas Solutions based on 60% of the aggregate of the FY2010 and FY2011 net profit after tax, subject to a limit of $4,950,000 less any existing capital contribution by the company up to such time.