Saudi Arabia’s TAQA to acquire North American energy firms

Azzam Shalabi CEO of TaqaSaudi Arabia’s Industrialisation and Energy Services Company (TAQA) has announced that it plans to acquire two North American oilfield services technology and manufacturing companies by the end of the year

The announcement made at the Offshore Technology Conference (OTC) is part of the company’s 2021 strategy to become a leading provider of oilfield services and equipment (OFSE).

TAQA has allocated approximately US$1.2bn for new investments and acquisitions over the next three years to expand its capacity and footprint in oilfield services, equipment manufacturing and new technologies across the wider Middle East North Africa region and North America.

The company provided further details on its strategic transformation plan for 2021, which has been underway since 2017 when it acquired the Canadian well services company, Sanjel. Since then, TAQA has completed several additional investments including a 50,000-horsepower FRAC fleet that will be commissioned and fully operational later this year and the expansion of its drilling subsidiary, the Arabian Drilling Company (ADC), with the commissioning of an additional 16 onshore rigs in 2018.

TAQA also announced that ADC has agreed to acquire Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan for US$415mn.

Commenting on the transaction, Azzam Shalabi, CEO of TAQA, said, “TAQA’s planned investments in North America complement our Middle East expansion ambitions and are a key component of our 2021 Strategy which aims to deliver the best, most advanced integrated oilfield services and manufacturing solutions to our clients.”

“North America is home to some of the world’s leading oilfield services companies and represents an exciting investment and expansion opportunity for TAQA. We are actively seeking to tap into the latest technology and manufacturing practices in this market, especially in the unconventional resources space, where we see significant growth opportunities,” he added.

“These new offerings and expertise will be brought back to our clients in the Middle East region to ensure they get access to world-class, high-quality services. We look forward to announcing details on these investments and acquisitions in the very near future,” he concluded.

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