A subsidiary of Weatherford International has signed a definitive settlement with ADES International Holding Ltd. for the sale of Weatherford’s land drilling rig operations in Algeria, Kuwait and Saudi Arabia in addition to two idle land rigs in Iraq, for an combination money buy value of $287.5 million. The Transaction contains 31 land drilling rigs and associated drilling contracts, in addition to roughly 2,300 workers and contract personnel.
The Transaction is predicted to be executed in a collection of closings, most of which might be considerably accomplished within the second half of 2018, topic to regulatory approvals, consents and different customary closing circumstances. The buy value can be topic to a customary post-closing working capital adjustment. Upon closing, Weatherford will use the proceeds to cut back its debt.
“We are happy to have signed an settlement with ADES, an organization that’s recognized for offering top quality and environment friendly companies with an intensive monitor document of serving main regional and international oil and gasoline prospects,” mentioned Mark A. McCollum, President and Chief Executive Officer of Weatherford. “ADES is buying an environment friendly fleet of land drilling rigs and a devoted workforce with greater than 60 years of expertise in delivering drilling effectivity, operational excellence, and first-class security. It was essential to us to discover a purchaser who will proceed to supply the identical stage of service high quality, security and dedication to prospects on this area.”
Commenting on the Transaction, Dr. Mohamed Farouk, Chief Executive Officer of ADES International Holding, mentioned: “We are really delighted to have signed this settlement with Weatherford, the place its status as one of many world’s largest oilfield service firms and its deep-rooted information and skilled professionals in over 90 international locations ensures that this substantial asset and personnel addition might be a internet constructive for ADES. This landmark Transaction considerably expands ADES’ whole fleet and greater than doubles its operational fleet, according to our technique of executing sensible acquisitions, alongside constructing our backlog and participation in tenders. Similar to our prior acquisitions, ADES is dedicated to the swift worth extraction of its acquired belongings using the Company’s targeted enterprise mannequin.”
This Transaction is the second in a collection of beforehand introduced deliberate divestitures, designed to maximise Weatherford shareholder worth by refocusing the Company’s portfolio on the companies most carefully aligned with its long-term technique and to cut back its debt. Following this Transaction, Weatherford plans to divest its remaining land drilling rigs by means of a collection of smaller gross sales within the coming quarters. (Source and picture: Weatherford International)
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