ADES has announced that it has completed the acquisition of 11 onshore rigs from Weatherford in Saudi Arabia.
The transaction forms part of the previously signed definitive agreement with a subsidiary of Weatherford to acquire 31 onshore drilling rigs for a total consideration of $287.5 million across Kuwait, Saudi Arabia, Algeria and Southern Iraq. ADES continues to work towards closing the acquisition of the remaining six Weatherford rigs in Algeria, with completion expected by the end of 2018.
- 11 rigs acquired for a total consideration of $92.5 million, financed through a combination of cash and secured debt instruments.
- Nine out of 11 rigs currently contracted in Saudi Arabia with a cumulative estimated backlog of $78 million.
- Management is working to secure new contracts and extensions for the newly acquired rigs, which it expects will add new backlog before year-end.
- The transaction includes Weatherford’s associated assets in Saudi Arabia, management systems and circa 923 employees and contract personnel.
- The contracted rigs provide exposure to the natural gas market in Saudi Arabia.
“We have now completed the majority of the Weatherford acquisition, which is transformational for the group, significantly increasing our size, visibility and exposure in the onshore market,” Dr Mohamed Farouk, Chief Executive of ADES, said. “We are also particularly pleased to be deepening ADES’ presence in KSA and strengthening our relationship with our strategic customer there who continues to place their confidence in us. We look forward to finalizing the Algerian tranche of the Weatherford acquisition before year-end and are optimistic about ADES’s growth trajectory during 2019.”