TAQAs ADC to acquire Middle East drilling rigs of Schlumberger
The acquisition has followed on from fast-tracked expansion activity of ADC in 2018. Saudi Arabia's Industrialisation and Energy Services Company (TAQA), has reportedly announced that Arabian Drilling Company (ADC), its drilling subsidiary, has agreed to acquire Middle East onshore drilling rig business of Schlumberger in Oman, Pakistan, Kuwait and Iraq for $415 million. Reportedly, ADC will operate a fleet of 9 offshore rigs and 58 onshore rigs across MENA region. There will be over 5,900 employees in this combined firm. The 2021 strategy of TAQA is aimed at becoming a leading regional oilfield services and equipment (OFSE) company. The 2021 strategy is based on three key pillars – supporting value by providing differentiated, best-in-class client services and safety, using the latest technologies; realizing better operational efficiencies and value by providing more integrated client services that are reliable, competitive and safe; and making value by growing into new markets and higher-tier services, and strengthening the position and growth of its existing businesses. Azzam Shalabi, Chairman of the ADC board and CEO of TAQA, reportedly stated that the acquisition has been aligned with Saudi Vision 2030. It has positioned a leading Saudi company as a global player and leverages a more integrated regional approach to unlock value and drive growth across entire value chain, he further added. As per reliable sources, the acquisition has followed on from fast-tracked expansion activity of ADC in 2018. The 16 rigs were commissioned to support the growth of Saudi Aramco in this activity. The transaction demonstrates that ADC and TAQA are delivering on growth strategies and transformation. It has also strengthened the partnership of Schlumberger and TAQA. TAQA has been looking forward to support ADC in the next phase of its expansion to benefit stakeholders. The transaction is anticipated to be completed in the second half of 2019, subject to regulatory approvals. For the record, Rothschild & Co. acted as exclusive financial advisor to Schlumberger and Moelis & Company acted as exclusive financial advisor to TAQA. Source credit: https://www.oilandgasmiddleeast.com/drilling-production/33840-taqa-drilling-subsidiary-to-acquire-schlumbergers-middle-east-drilling-rigs-business-for-415mn http://www.arabnews.com/node/1489376/corporate-news