RNS Number : 1417J
ADES International Holding
03 December 2018
 

ADES Completes Acquisition of Drilling Operations from Weatherford in Saudi Arabia

 

(London & Dubai, 03 December 2018) ADES International Holding Ltd. ("ADES" or the "Group"), a leading oil & gas drilling and production services provider in the Middle East and North Africa (MENA), is pleased to announce that it has completed the acquisition of eleven onshore rigs from Weatherford International plc. ("Weatherford") in Saudi Arabia.

 

The transaction forms part of the previously signed definitive agreement with a subsidiary of Weatherford to acquire thirty-one 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.

 

Transaction Highlights

 

·    Eleven rigs acquired for a total consideration of $92.5 million, financed through a combination of cash and secured debt instruments

·      Nine out of eleven 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

 

Dr. Mohamed Farouk, Chief Executive of ADES, said: "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. 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".

 

-Ends-

Enquiries

 

ADES International Holding

 

 

Hussein Badawy

 

 

Investor Relations Officer

ir@adesgroup.com

+2 (0)2527 7111

Instinctif

 

 

David Simonson

david.simonson@instinctif.com

+44 (0)20 7457 2020

George Yeomans

george.yeomans@instinctif.com

+44 (0)20 7457 2020

Sarah Hourahane

sarah.hourahane@instinctif.com

+44 (0)20 7457 2020

 

NOTES TO EDITORS

 

About ADES International Holding

 

ADES International Holding extends oil and gas drilling and production services through its subsidiaries and is a leading service provider in the Middle East and Africa, offering onshore and offshore contract drilling as well as workover and production services. Its over 3,400 employees serve clients including major national oil companies ("NOCs") such as Saudi Aramco, Kuwait Oil Company and Sonatrach as well as joint ventures of NOCs with global majors including BP and Eni. While maintaining a superior health, safety and environmental record, the Group currently has a fleet of twenty-six onshore drilling rigs, thirteen jack-up offshore drilling rigs, a jack-up barge, and a mobile offshore production unit ("MOPU"), which includes a floating storage and offloading unit. For more information, visit investors.adihgroup.com.

 

About Weatherford

Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 710 locations, including manufacturing, service, research and development, and training facilities and employs approximately 28,450 people.

 

Forward-looking statements

Certain statements contained in this announcement, including any information as to the Group's strategy, plans or future financial or operating performance constitute "forward looking statements". These forward-looking statements can be identified by the use of forward looking terminology, including the terms "believes", "estimates", "anticipates", "projects", "expects", "intends", "aims", "plans", "predicts", "may", "will", "seeks" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of the Directors of the Company concerning, amongst other things, the Group's results of operations, financial condition and performance, prospects, growth and strategies and the industry in which the Group operates.

By their nature, forward looking statements address matters that involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward looking statements are not guarantees of future performance and the Group's actual results of operations and financial condition, and the development of the business sector in which the Group operates, may differ materially from those suggested by the

forward-looking statements contained in this announcement. In addition, even if the Group's results of operations and financial condition, and the development of the industry in which the Group operates, are consistent with the forward- looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods.

 

 

 


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