KCA announced that it has finished the first phase of its planned acquisition of Saipem onshore drilling business. This first phase encompasses Saudi Arabia, UAE and Africa, with Kuwait expected to follow later in Q4 2022. The acquisition of the Latin America business together with the rigs in Romania and Kazakhstan will be completed in 2023.
The total consideration payable for the business is $550 million in cash and a 10% equity interest in the group, with $85 million of cash consideration to be withheld pending completion of the remaining closings. In addition, Saipem will be entitled to appoint one board member to the business.
Once the acquisition is fully completed the combined group will manage a lglobal onshore drilling business generating over 50% of its EBITDA from the Middle East with more than 11,000 employees globally. Total backlog will increase by $1.8 billion to $6.7 billion.
“Today marks a major and exciting milestone for KCA Deutag. By completing the first and largest phase of the Saipem Onshore Drilling acquisition, we will significantly expand and upgrade our business in the Middle East, a core market for the group,” said Joseph Elkhoury KCA Deutag CEO. “This acquisition will additionally stimulate growth opportunities for Kenera with oilfield services, innovative technology and exciting energy transition solutions.”