TAQA, Saudi Arabia’s industrialisation and energy services company, has announced that it will acquire Texas-based Schlumberger’s Middle East onshore drilling rigs business
TAQA will make the acquisition for US$415mn through its drilling subsidiary, Arabian Drilling Company (ADC).
The deal will add the onshore drilling rig business of Schlumberger in Kuwait, Oman, Iraq, and Pakistan to the Saudi operations of ADC.
ADC will operate 58 onshore rigs and nine offshore rigs across the Middle East and North Africa through the expansion.
Azzam Shalabi, CEO of TAQA and chairman of the ADC Board, said, “This acquisition is fully aligned with Saudi Vision 2030. It unlocks value and drives growth across our entire value chain through a more integrated regional approach, while positioning a leading Saudi company as a global player.”
“The transaction also follows on from ADC’s accelerated expansion activity in 2018 when 16 rigs were commissioned to support the growth of Saudi Aramco. This new combination clearly demonstrates that TAQA and ADC are delivering on their transformation and growth strategies, and further strengthens what is already a long-standing and trusted partnership between TAQA and Schlumberger,” he added.
“We look forward to supporting ADC in the next phase of its expansion and have full confidence that this will benefit all stakeholders, most notably our regional clients,” he noted.
The transaction is expected to close in the second half of 2019.
