ADES, a leading oil and gas drilling and production services provider in the Middle East and North Africa, has announced that it has completed the acquisition of twelve onshore rigs from Weatherford in Kuwait.
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.
- Twelve rigs acquired for a total consideration of $123 million, two idle land-drilling rigs in Southern Iraq for an additional $12 million pending delivery, all of which were financed through a combination of cash and secured debt instruments.
- Eight out of 12 rigs currently contracted in Kuwait with a cumulative estimated backlog of $600 million to be consumed over the next six years (including options).
- Includes Weatherford’s associated assets in Kuwait, management systems and circa 976 employees and contract personnel.
ADES continues to work towards closing the acquisition of the remaining 17 Weatherford rigs, including 11 rigs in Saudi Arabia and six rigs in Algeria, with completion expected by the end of 2018.
ADES will provide a trading update to the market mid November 2018.
“Today’s announcement is an important milestone for the Group as we enter the attractive Kuwaiti market for the first time,” Dr Mohamed Farouk, Chief Executive of ADES, said. “The twelve Kuwaiti rigs bring ADES’ total number of onshore rigs in the MENA region to 15, significantly increasing our onshore capabilities and cementing the group’s position as a major drilling contractor for both onshore and offshore markets.”