Saudi Arabia's TAQA Announces North American Investment and Acquisition Plans at Offshore Technology Conference in Texas
- Aims to invest over $1 billion in new investments and acquisitions over the next 3 years, including the acquisition of two North American companies in oilfield services technology and manufacturing
- TAQA’s 2021 Strategy is to become a leading oilfield services and equipment provider, targeting new markets in the wider Middle East & North Africa (MENA) and investments in North America and other regions
- TAQA’s drilling subsidiary recently announced the acquisition of Middle East drilling rigs business of Texas-based Schlumberger for $415 Million
Houston and Dammam, May 6, 2019 – Saudi Arabia’s Industrialization and Energy Services Company (TAQA) plans to acquire two companies in the North American oilfield services technology and manufacturing sectors by the end of the year. The announcement made today at the industry flagship Offshore Technology Conference (OTC) in Texas, forms part of the company’s 2021 Strategy to become a leading oilfield services and equipment (OFSE) provider.
TAQA has allocated approximately $1.2 billion for new investments and acquisitions over the next 3 years to build-out its capabilities and footprint in oilfield services, equipment manufacturing and new technologies across the wider Middle East North Africa region and North America. The company is currently in discussions to acquire two companies in North America this year, a major step in accelerating its 2021 transformation and growth strategy. These acquisitions would add specific new technologies and manufacturing capabilities to TAQA’s existing integrated OFSE offering. TAQA is also reviewing a number of further investment and acquisition opportunities in the wider Middle East region, as part of its goal to become a leading regional player.
The oilfield services and equipment provider already has a substantial portfolio of wholly owned companies, subsidiaries and affiliates that were established in joint ventures with global leaders across several oilfield equipment and services markets, focusing on four core businesses: (1) contact drilling, (2) Oil Country Tubular Goods (OCTG) manufacturing, (3) geophysical mapping, and (4) TAQA’s wholly owned FRAC and wells services company.
Today, TAQA provided further details on its 2021 strategic transformation plan, which has been underway since 2017 when it acquired Canadian well services company, Sanjel. Since that time, TAQA has completed several additional investments including a 50,000-horsepower FRAC fleet that will be commissioned and fully operational later this year and the expansion of its drilling subsidiary, the Arabian Drilling Company (ADC), with the commissioning of an additional 16 onshore rigs in 2018.
Most recently, TAQA also announced that ADC has agreed to acquire Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan for $415 million. The transaction transforms ADC into a regional drilling leader with one of the largest rig fleets, client portfolios and geographic footprints in the Middle East.
Commenting on the transaction, Azzam Shalabi, CEO of TAQA, said: “TAQA’s planned investments in North America complement our Middle East expansion ambitions and are a key component of our 2021 Strategy which aims to deliver the best, most advanced integrated oilfield services and manufacturing solutions to our clients. North America is home to some of the world’s leading oilfield services companies and represents an exciting investment and expansion opportunity for TAQA. We are actively seeking to tap into the latest technology and manufacturing practices in this market, especially in the unconventional resources space, where we see significant growth opportunities. These new offerings and expertise will be brought back to our clients in the Middle East region to ensure they get access to world-class, high quality services. We look forward to announcing details on these investments and acquisitions in the very near future.”
TAQA’s 2021 strategy is to become a leading regional oilfield services and equipment (OFSE) company and is based on three key pillars: (1) creating value by strengthening the position and growth of its existing businesses and expanding into higher-tier services and new markets, (2) sustaining value by providing differentiated, best-in-class client services and safety, using the latest technologies, and, (3) realizing value and greater operational efficiencies by delivering more integrated client services that are safe, reliable and competitive.
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