Weatherford to Sell Drilling Rigs Business in Kuwait, Saudi Arabia, Algeria
A subsidiary of Weatherford International plc has signed a definitive agreement with ADES International Holding Ltd for the sale of Weatherford's land drilling rig operations in Algeria, Kuwait and Saudi Arabia, as well as two idle land rigs in Iraq, for an aggregate cash purchase price of $287.5 million.
The transaction, which includes 31 land drilling rigs and related drilling contracts, as well as approximately 2,300 employees and contract personnel, is expected to be executed in a series of closings.
Most of these will be “substantially completed in the second half of 2018, subject to regulatory approvals, consents and other customary closing conditions,” according to a statement posted on Weatherford’s website. The purchase price is also subject to a customary post-closing working capital adjustment.
"We are pleased to have signed an agreement with ADES, a company that is known for providing high quality and efficient services with an extensive track record of serving leading regional and global oil and gas customers," Mark A. McCollum, president and CEO of Weatherford, said in a company statement.
"ADES is acquiring an efficient fleet of land drilling rigs and a dedicated workforce with more than 60 years of experience in delivering drilling efficiency, operational excellence, and first-class safety. It was very important to us to find a buyer who will continue to provide the same level of service quality, safety and dedication to customers in this region,” he added.
Commenting on the Transaction, Dr. Mohamed Farouk, CEO of ADES International Holding, said the group was “truly delighted” to have signed the agreement with Weatherford.
“This landmark transaction significantly expands ADES' total fleet and more than doubles its operational fleet, in line with our strategy of executing smart acquisitions, alongside building our backlog and participation in tenders,” Farouk said in a company statement.
“Similar to our prior acquisitions, ADES is committed to the swift value extraction of its acquired assets utilizing the company's focused business model,” Farouk added.
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