Page 8 - MEOG Week 18 2021

MEOG FINANCE & INVESTMENT MEOG

Arabian Drilling plans IPO

SAUDI ARABIA SAUDI Arabian state-backed Arabian Drilling Arabian Chevron (SAC), with the latter repre-
Co. (ADC) is understood to be preparing to senting the Kingdom.
launch an initial public offering (IPO), according At capacity, Khafji and the onshore Wafra oil-
to sources spoken to by Bloomberg. field can produce around 550,000 barrels per day
The sources who are familiar with the plans (bpd); however, the fields were shut in because of
said that the listing would give ADC a total valu- disagreements between the two governments in
ation of around $2bn. 2014 and then in 2015.
Saudi’s Industrialisation & Energy Services ADC’s fleet of rigs includes 38 onshore rigs
Co. (TAQA) holds a 51% stake in ADC, with of various sizes “designed to work in harsh cli-
global services specialist Schlumberger owning matic conditions and environments and capable
the remaining 49%. of handling the most challenging client drilling
Speaking on condition of anonymity, the programmes” and seven offshore units that
sources said that ADC had asked banks to pitch include heavy-duty jack-ups “outfitted with high
for work in the potential listing. specification equipment and capable of drilling
According to the company’s website, ADC in 75 metres of water”.
was formed in 1964 and lists major clients It also owns a self-propelled multi-purpose
including Saudi Aramco, Schlumberger and service vessel (MPSV) which is used for well
Al-Khafji Joint Operations (KJO) – the joint intervention and well testing services.
venture between Kuwait Petroleum Corp.’s A potential listing is seen being made on the
Kuwait Gulf Oil Co. (KGOC) subsidiary and Tadawul stock exchange in Riyadh before the
Aramco subsidiary Aramco Gulf Operations Co. end of the year, though the sources noted that no
(AGOC), which manages the offshore portion of final decision had yet been made.
the partitioned neutral zone (PNZ). The news follows reports that Abu Dhabi
Last month, rehabilitation work was said to National Oil Co. (ADNOC) was considering list-
be ongoing to address subsurface, seismic and ing its drilling arm on the local stock exchange
geological issues and prepare the Al-Khafji and in an IPO thought to be worth $1bn to the com-
Wafra fields to reach their former heights, with pany. ADNOC Drilling is the region’s largest
the latter operated by Wafra Joint Operations driller and has a fleet of 63 onshore rigs, 20 off-
(WJO), which is jointly run by KGOC and Saudi shore jack-up rigs and 11 island rigs.™

P8 www. NEWSBASE .com Week 18 05•May•2021