ADES International buys last four rigs from under Weatherford deal
ADES International Holding (DI)
$12.35
16:30 20/05/21
Oil and gas drilling and production services provider ADES International Holding has completed the acquisition transaction with Weatherford International and receipt of the final two onshore rigs in Algeria, it announced on Tuesday, with a further two rigs delivered outside of Southern Iraq for relocation to Saudi Arabia.
Oil Equipment, Services & Distribution
4,928.34
16:30 11/04/24
The London-listed firm said the acquisition cost was $20m for the Algerian rigs, and an additional $12m for the Southern Iraq rigs, for a total consideration of $32m for the four rigs.
It said the transaction was the final segment of the previously-signed definitive agreement with a subsidiary of Weatherford to acquire 31 onshore drilling rigs, for a total consideration of $287.5m, including 12 rigs in Kuwait, 11 in Saudi Arabia, six in Algeria and two rigs delivered outside of Southern Iraq for relocation to Saudi Arabia.
“With the Weatherford acquisition now complete, we have effectively tripled our fleet size and more than doubled our number of operating rigs across an expanded geographical footprint,” said chief executive officer Dr Mohamed Farouk.
“Our strategy in 2019 will focus on organic growth and on capitalising on the increased tendering capacity afforded by the eleven uncontracted rigs acquired through the transaction.
“We expect to extract synergies from our larger fleet and are pushing forward an asset integration program to manage the rapid operational growth.”