ADES International Holding Ltd, a leading oil & gas drilling and production services provider in the Middle East and North Africa (MENA), said it has completed the acquisition of twelve onshore rigs from Weatherford International in Kuwait.
The transaction forms part of the previously signed definitive agreement with a subsidiary of Weatherford to acquire thirty-one onshore drilling rigs for US$287.5 million across Kuwait, Saudi Arabia, Algeria and Southern Iraq.
The transaction includes 12 rigs for $123 million, two idle land drilling rigs in Southern Iraq for an additional $12 million pending delivery, all of which were financed through a combination of cash and secured debt instruments, the company said in a statement.
Eight out of twelve rigs are currently contracted in Kuwait with a cumulative estimated backlog of $600 million to be consumed over the next six years, including options.
The acquisition includes Weatherford’s associated assets in Kuwait, management systems and circa 976 employees and contract personnel.
ADES said it continues to work towards closing the acquisition of the remaining seventeen Weatherford rigs, including eleven rigs in Saudi Arabia and six rigs in Algeria, with completion expected by the end of 2018.
Dr. Mohamed Farouk, chief executive of ADES, said: “Today’s announcement is an important milestone for the group as it enters the attractive Kuwaiti market for the first time. The twelve Kuwaiti rigs bring ADES’ total number of onshore rigs in the MENA region to fifteen, significantly increasing our onshore capabilities and cementing the Group’s position as a major drilling contractor for both onshore and offshore markets.”