Drilling specialist KCA Deutag said it has completed the acquisition of a further 44 rigs from Saipem Onshore Drilling’s Latin American business.
This complements the previously announced closing phases which included Saudi Arabia, Kuwait, UAE, and Africa. KCA Deutag stated that the acquisition of the 44 rigs includes 17 rigs currently inactive in Venezuela.
This leaves only six rigs remaining to be acquired once regulatory approvals and other local administrative processes are finalized.
“With this part of the acquisition completed in Latin America, we have continued to expand our global business in new and active markets. We take this opportunity to welcome the Latin America team to the KCA Deutag family. The integration project continues to progress well with significant early synergy realization as we proactively collaborate with our new colleagues to #becomeoneteam and deliver a safe seamless transition to all customers,” Joseph Elkhoury, KCA Deutag CEO, said.
“We remain optimistic about the market, are pleased with the ongoing business transformation, and look forward to delivering a strong financial performance in 2023,” Elkhoury added.
The initial announcement for the sale of Saipem Onshore Drilling was made on June 1, 2022. Saipem closed the sale in late October. The agreement provides for the sale of the entirety of Saipem’s onshore drilling operations to KCA Deutag that includes the Middle East, Africa, and the Americas for an overall cash consideration of $550 million, in addition to a 10 percent share participation in KCA Deutag. Saipem is also entitled to appoint one member of the board of KCA Deutag.
At the time of the close of the sale, Saipem said that it was a milestone towards a more focused and resilient business model based on the growing trends of Saipem’s reference markets, concentrating efforts in the offshore drilling business while supporting the achievement of its capital structure and liquidity objectives.
As for KCA Deutag, it has over 130 years of experience as a drilling, engineering, and technology company working both onshore and offshore. It operates approximately 113 drilling rigs in 18 countries, either directly or through its affiliates, employing people in Africa, Europe, the Middle East, the Caspian Sea, and Canada.
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