Saudi Arabia's Taqa acquires Schlumberger's Middle East drilling business for $415m

Schlumberger is the world's largest energy services firm

Schlumberger sold its drilling business in Kuwait, Oman, Iraq and Pakistan to Saudi Arabia's Taqa. Reuters

Saudi energy firm Taqa agreed to acquire Schlumberger’s drilling business in the Middle East for $415 million (Dh1.5 billion) through a subsidiary.

Arabian Drilling Company acquired the German energy services firm’s drilling rigs business in Kuwait, Oman, Iraq and Pakistan, a transaction the company said would leave it with one of the "largest rig fleets, client portfolios and geographic footprint” in the Middle East.

"The transaction also follows on from ADC’s accelerated expansion activity in 2018 when 16 rigs were commissioned to support the growth of Saudi Aramco,” said Azzam Shalabi, chief executive at Taqa and chairman of the board of ADC.

The transaction is expected to close in the second half of 2019 pending regulatory approvals, the company said.

Energy services companies operating in Saudi Arabia, the world’s biggest exporter of oil, have seen a record flurry of project activity on the back of upstream investment following the recovery in crude prices.

The UAE’s National Petroleum Construction Company (NPCC) saw its 2018 net operating profit grow by 27 per cent, driven largely by its growing business in Saudi Arabia.

The company won five business contracts with state-oil firm Saudi Aramco valued at $1.1 billion in 2018 as well as another with India’s Oil and Natural Gas Corporation.