Today: September 21, 2018, 4:53 am
  
Business

ADES Acquires 31 Onshore Drilling Rigs in Kuwait, Saudi Arabia, Algeria

PR-Inside.com: 2018-07-12 09:50:01

ADES Acquires 31 Onshore Drilling Rigs in Kuwait, Saudi Arabia, Algeria

ADES International Holding
Investor Relations Officer
Hussein Badawy,
T: +2 (0)2 2527 7111
ir@adesgroup.com
or
Instinctif
David Simonson/david.simonson@instinctif.com
or
George Yeomans/george.yeomans@instinctif.com
or
Sarah Hourahane/sarah.hourahane@instinctif.com
+44 (0)20 7457 2020

ADES International Holding Ltd. (“ADES” or the “Company”) (LON: ADES), the London-listed company providing offshore and onshore oil and gas drilling and production services in the Middle East and Africa through its subsidiaries, is pleased to announce that it has signed a definitive agreement with Weatherford International plc (“Weatherford”) for the acquisition of thirty-one onshore drilling rigs (the “Transaction”) for a purchase price of c.US$ 287.5 million, in line with its strategy to strengthen its onshore capabilities.

The Transaction will be financed through a combination of cash and secured debt instruments, and is expected to close in the second half of 2018, subject to customary closing conditions agreed upon in the agreement.

As part of the Transaction, ADES will acquire Weatherford’s onshore drilling operations, including their associated assets, contracts, management systems and approximately 2,300 employees and contract personnel spread across Algeria, Kuwait and Saudi Arabia, where Weatherford has built a substantial presence and track record that will enable ADES to expand its presence across attractive pre-selected markets within the Middle East and Africa, consistent with its strategy.

The acquired assets consist of twelve rigs in Kuwait, eleven rigs in Saudi Arabia, six rigs in Algeria and two rigs in Southern Iraq. Twenty of the acquired 31 rigs are currently operational and the remaining eleven will be used in tendering activities and for strategic inventory purposes that will enable ADES to continue to grow in these attractive markets within the Middle East and Africa. Upon completion of the Transaction, the rigs are expected to generate an annual revenue of US$150 million, while allowing the group to utilise its focused business model and leverage its economies of scale in existing markets. The acquired contracted rigs add an estimated cumulative backlog of US$750 million, with a weighted average contract tenor of 4.5 years.

The Transaction brings the number of ADES’ onshore rigs in MENA to thirty-four, significantly increasing its onshore capabilities and cementing the group’s position as a major drilling contractor for both onshore and offshore markets in the region.

Dr. Mohamed Farouk, Chief Executive Officer of ADES, said: “We are truly delighted to have signed this agreement with Weatherford, where its reputation as one of the world’s largest oilfield service companies and its deep-rooted knowledge and experienced professionals in over 90 countries guarantees that this substantial asset and personnel addition will be a net positive for ADES. 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. ADES is committed to the swift value extraction of its acquired assets utilising the Company’s focused business model.”

View the full announcement here.

Press Information


Published by
Hossam Abdel-Kader
+43 1 9582319
e-mail
http://www.pr-inside.com/


# 582 Words
Related Articles
More From The Author
Neo Industrial Plc’s Strategy, Targets and Dividend [..]
NEO INDUSTRIAL PLC   STOCK EXCHANGE RELEASE  12 JULY 2018 AT 10.00 AM Neo Industrial Plc's Strategy, Targets and Dividend Policy [..]
NAXS AB (publ) has resolved to repurchase [..]
The board of NAXS AB (publ) has resolved, pursuant to the authorisation granted by the Annual General Meeting held on [..]
Half year financial report January-June 2018
First half-year 2018 Net profit/loss for the first half-year amounted to MSEK 11.6 (59.8). Earnings per share amounted to SEK [..]
Vestas to deliver 112 MW turnkey solution [..]
News release from Vestas Asia Pacific Singapore, 12 July 2018  Australian-based Palisade Investment Partners Limited (Palisade) has [..]
Saniona receives milestone payment from Boehringer Ingelheim
PRESS RELEASE July 12, 2018 Saniona, a leading biotech company within ion-channel research, today announced that Boehringer Ingelheim [..]
 
More From Business
Badger Maps provides free mapping software for [..]
Badger Maps is a mapping and route optimization app that has provided its solution for free to all first responders, [..]
HKTDC 'In Style, Hong Kong' Opens in [..]
Forging Closer Ties between Hong Kong and Vietnam HONG KONG, Sept 20, 2018 - (ACN Newswire) - The Hong Kong [..]
InSitu Asia sells coworking space “District6” to [..]
InSitu Asia has sold co-working space District6 to Zero Ten, headquartered in Fukuoka City, Hakata-ku. InSitu Asia Co-Founder Yuta [..]
Hong Kong Export Index 3Q18: Exporters Advised [..]
HONG KONG, Sept 18, 2018 - (ACN Newswire) - Hong Kong exporters are urged to diversify into emerging markets such [..]
Coinsuper CEO Bullish on long-term Crypto at [..]
HONG KONG, Sept 17, 2018 - (ACN Newswire) - Coinsuper Co-founder & CEO, Karen Chen, was invited as the speaker [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.