ADES Completes Acquisition of Operations from Weatherford in Algeria

Source Press Release
Company ADES GroupWeatherford International Ltd 
Tags Asset Deals, Deals, Oil Services
Date February 28, 2019

ADES International Holding PLC ("ADES" or the "Group"), a leading 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 ("Weatherford") 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 US$ 287.5 million across Kuwait, Saudi Arabia, Algeria and Southern Iraq.

Transaction Highlights

·      Four rigs acquired for a total consideration of US$ 40 million and the remaining two rigs will be acquired after relocation within Algeria for a total consideration of US$ 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."

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd