Drilling specialist KCA Deutag said it has completed the acquisition of 44 more rigs from Saipem Onshore Drilling’s Latin American business.
This complements the previously announced closure phases that included Saudi Arabia, Kuwait, the United Arab Emirates and Africa. KCA Deutag stated that the acquisition of the 44 rigs includes 17 currently inactive rigs in Venezuela.
That leaves just six teams to acquire once regulatory approvals and other local administrative processes are completed.
“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 American team to the KCA Deutag family. The integration project continues to progress well with the realization of significant early synergies as we proactively collaborate with our new colleagues to #becomeoneteam and deliver a secure and seamless transition for all customers,” said Joseph Elkhoury, CEO of KCA Deutag.
“We remain bullish on the market, are pleased with the ongoing business transformation and expect to deliver 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 at the end of October. The agreement provides for the sale of all of Saipem’s onshore drilling operations to KCA Deutag, which includes the Middle East, Africa and the Americas for a total cash consideration of $550 million, plus a 10 percent stake in cent in KCA Deutag. Saipem also has the right to appoint a board member of KCA Deutag.
At the time of closing the sale, Saipem said it was a milestone towards a more focused and resilient business model based on growing trends in Saipem’s benchmark markets, concentrating efforts on the offshore drilling business while supporting the achievement of its capital structure. and liquidity goals.
As for KCA Deutag, it has more than 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 subsidiaries, providing employment in Africa, Europe, the Middle East, the Caspian Sea and Canada.
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