Saudi Arabia's ADC starts $415 mln buyout of U.S. Schlumberger's ME assets

Saudi oilfield services company Industrialization & Energy Services Co.'s (Taqa) drilling subsidiary has started acquiring Texas-based rival Schlumberger Ltd.’s Middle Eastern (ME) drilling-rig business.

As part of the acquisition plan, Arabian Drilling Co. (ADC) agreed to pay approximately $415 million for Schlumberger Ltd.’s Middle Eastern drilling-rig assets.

The deal, expected to close in the second half of 2019, subject to regulatory approvals, will also create economies of scale and cost synergies, making ADC a regional leader, encompassing a diversified, multi-country and multi-client offering.

With a planned total investment of $1.2 billion, Taqa is targeting two transactions in North America this year, which will help improve its technological and manufacturing capabilities.