Drilling company Ades International Holding has bought 12 onshore rigs from Weatherford in Kuwait for $ 123 million.
The oil & gas drilling and production services provider in the Middle East and North Africa (MENA) said in a press release that 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 $287.5 million across Kuwait, Saudi Arabia, Algeria and Southern Iraq.
"Twelve rigs acquired for a total consideration of US$ 123 million, two idle land drilling rigs in Southern Iraq for an additional US $12 million pending delivery, all of which were financed through a combination of cash and secured debt instruments," said a release from the company.
Eight out of twelve rigs currently contracted in Kuwait with a cumulative estimated backlog of US$ 600 million to be consumed over the next six years (including options), it said.
Transaction includes Weatherford's associated assets in Kuwait, management systems and circa 976 employees and contract personnel.
ADES continues to work towards closing the acquisition of the remaining seventeen Weatherford rigs, including eleven rigs in Saudi Arabia and six rigs in Algeria, with completion expected by the end of 2018. It will provide a trading update to the market mid November 2018.
Dr. Mohamed Farouk, Chief Executive of ADES, said: "Today's announcement is an important milestone for the Group as we enter the attractive Kuwaiti market for the first time. The twelve Kuwaiti rigs bring ADES' total number of onshore rigs in the MENA region to fifteen, significantly increasing our onshore capabilities and cementing the Group's position as a major drilling contractor for both onshore and offshore markets."