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The smaller Perth-based firm Nihar was established 17 years ago and has since built a steady client base in Australia's oil and gas sector and wider resources industry.
Under the new venture, Louisiana-headquartered EDG will use Nihar's asset maintenance and optimisation services arm, to complement its own engineering, design and project work.
Nihar business development manager Matheesha Jayasekera said the new joint venture partnership was a "natural progression" from the two companies' current engagement.
The two businesses have worked together on multiple oil and gas projects since 2017, including Woodside's offshore projects on the North West Shelf, Chevron's Gorgon project and various Sapura Energy developments.
"This partnership will provide a solid platform for both parties to broaden their services and customer base in the Asia-Pacific region," Jayasekera said.
"The solutions we provide in many cases require engineering analysis and this is where Nihar and EDG's partnership will bridge the gap between engineering, maintenance, and systems."
EDG has been operating in North America, India, and Africa for over three decades.
Together the firms hope to establish the venture as the "leader in providing efficient, innovative and complete solutions" across not just the upstream oil and gas sector, but also the midstream and downstream divisions of industry.
EDG Australia general manager Alan Fotheringham said the collaboration came at a time when the international firm was "broadening its services and customer base."
"By joining forces, EDG and Nihar will have proven capabilities across the entire asset lifecycle, with a successful track record in the operating and optimisation phase integrated with project development and execution," Fotheringham said.
It comes at a time when oil and gas developments in Australia remain relatively solid, at least in comparison to North American oil and gas markets.