Saudi Arabia’s Industrialization and Energy Services Company (TAQA) has announced that its drilling subsidiary, Arabian Drilling Company (ADC), has agreed to acquire Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan for US$415 million (SAR 1.56 billion).
Through this expansion, ADC, will now operate a fleet of 58 onshore rigs and 9 offshore rigs across the MENA region. The deal creates economies of scale and cost synergies, making ADC a regional leader, encompassing a diversified, multi-country and multi-client offering.
The deal is set to close in the second half of 2019 and is subject to regulatory approvals.
Azzam Shalabi, CEO, 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.”
ADC, a drilling rig partnership between TAQA and Schlumberger, was established in 1964. The transaction transforms ADC into a regional drilling leader with one of the largest rig fleets and geographic footprints in the Middle East.