Taqa, Saudi Arabia, Acquires Schlumberger's Middle East Operations for $ 415 Million

Saudi energy company Taqa has agreed to acquire Schlumberger's drilling operations in the Middle East for $ 415 million (MAD 1.5 billion) through a subsidiary.

Arabian Drilling Company has acquired German drilling rigs in Kuwait, Oman, Iraq and Pakistan, which the company says would leave it with one of the "largest rigs , client portfolios and geographical footprint "in the Middle East.

"The transaction also follows ADC's accelerated expansion business in 2018, when 16 rigs were commissioned to support Saudi Aramco's growth," said Azzam Shalabi, Chief Executive Officer of Taqa and Chair of the ADC Board of Directors.

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

Energy service companies in Saudi Arabia, the world's largest oil exporter, recorded record activity in the project sector as a result of upstream investment following the recovery in crude oil prices.

The UAE National Petroleum Construction Company (NPCC) saw its net operating income for 2018 increase by 27%, mainly due to growth in Saudi Arabia.

The company has won five contracts with Saudi Aramco, a public oil company worth $ 1.1 billion in 2018, and another with India's Indian Oil and Natural Gas Corporation.