Riyadh – Mubasher: Saudi Arabia’s Industrialization and Energy Services Company (Taqa), backed by the kingdom’s sovereign wealth fund PIF, announced plans to invest up to SAR 4.5 billion ($1.2 billion) over the coming three years.
Taqa seeks to acquire two companies in the North American oilfield services technology and manufacturing sectors by the end of 2019, according to the company’s recent statement.
Taqa will buy Texas-based Schlumberger Ltd.’s Middle Eastern drilling-rig business, the Saudi firm said on the sidelines of the Offshore Technology Conference (OTC) in Texas, which is being held during the period between 6 and 9 May.
The transactions will improve Taqa’s technological and manufacturing capabilities, the company’s CEO Azzam Shalabi said.
The planned investments come along with the Middle East’s expansion ambitious and represent a key component of Taqa’s 2021 strategy.
Shalabi added that the company will use about $800 million of its own funds for the planned acquisitions and may seek loans or sell bonds or sukuk for the rest.
Taqa, which holds 51% of Arabian Drilling Company (ADC), is partly owned by the Saudi Public Investment Fund (PIF).
ADC has agreed to acquire Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq, and Pakistan for $415 million, turning ADC into a regional drilling leader with one of the largest rig fleets, client portfolios and geographic footprints in the Middle East.
