ADES completes acquisition of operations from Weatherford in Algeria
LONDON and DUBAI -- ADES International Holding PLC, an 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 four contracted onshore rigs from Weatherford International plc in Algeria.
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.
- Four rigs acquired for a total consideration of $40 million and the remaining two rigs will be acquired after relocation within Algeria for a total consideration of $20 million, financed through a combination of cash and secured debt instruments.
- The completion of the last two remaining rigs is expected within four weeks.
- 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 Algeria, management systems and circa 350 employees and contract personnel.
Dr. Mohamed Farouk, chief executive of ADES said, “We have now effectively completed the Weatherford acquisition, which is transformational for the group, significantly increasing our size, visibility and exposure to the onshore oil and gas market. We are also particularly delighted to be deepening our presence in Algeria and further underpin our revenue expectations for 2019.”