Page 14 - MEOG Week 43 2022

MEOG NEWS IN BRIEF MEOG

July-September after reduced demand and ending 30 June 2022. During the same period, company Boards for their support and extend
lower margins. Saipem Onshore Drilling generated revenue my genuine gratitude to all those involved in
For some years, OMV has been shifting of $490 million and EBITDA of $124 million delivering this transaction. I also appreciate
its growth focus towards high-quality plastics from its Middle East, Latin America and other the unrelenting resilience of our teams despite
such as polyethylene, polypropylene and PVC, markets. the recent adversity and disruption.”
from oil and gas. Once the acquisition is fully completed Barclays and Houlihan Lokey have acted
The strategy included integrating plastic- the combined Group will manage a leading as financial and debt advisors respectively, to
maker Borealis, in which it bought shares global onshore drilling business generating KCA Deutag on the transaction.
from Abu Dhabi state investor Mubadala over 50% of its EBITDA from the Middle East WORLD OIL
(MUDEV.UL) for $4.7 billion in 2020. OMV with more than 11,000 employees globally.
CEO Stern previously headed Borealis. Total backlog will increase by $1.8 billion to ADNOC Drilling delivers new
Mubadala, which also holds 24.9% in $6.7 billion.
OMV, agreed to sell a remaining 25% stake in The acquisition creates a leading global world record for longest
Borealis to ADNOC in April. onshore drilling business with over $1.7
REUTERS billion in revenue across core geographies in well
the Middle East and key markets in Europe
and Latin America. Abu Dhabi National Oil Company (ADNOC)
SERVICES Joseph Elkhoury KCA Deutag CEO said: announced today that a new world record for
“Today marks a major and exciting milestone the longest oil and gas well has been set at its
KCA Deutag completes for KCA Deutag. By completing the first and Upper Zakum Concession.
largest phase of the Saipem Onshore Drilling
Stretching 50,000 feet, the well is around
first phase of Saipem acquisition, we will significantly expand and 800 feet longer than the previous world record
upgrade our business in the Middle East, a
set in 2017 and supports ADNOC’s efforts
acquisition core market for the Group.” to expand production capacity of its lower
“Together, we have a unique opportunity to carbon oil and gas resources to help meet the
As part of continuing to deliver its growth build a leading international business, further world’s growing demand for energy. ADNOC
strategy and expanding in core markets such #enhancethebrand and deliver accretive value Drilling drilled the oil and gas well from
as the Middle East region, KCA Deutag has to all our stakeholders: our employees, our Umm Al Anbar, one of ADNOC Offshore’s
announced the completion of the largest customers, our investors and the communities artificial islands.
phase of the Saipem SpA’s onshore drilling where we live and work.” This extraordinary feat of engineering
business acquisition. “Moving forward, and as we welcome is part of an extended reach well project
This first phase encompasses Saudi Arabia, our new Saipem colleagues to the Group, designed and led by ADNOC Offshore, in
UAE and Africa, with Kuwait expected to our main goal is to proactively collaborate to collaboration with its Upper Zakum strategic
follow later in Q4 2022. The acquisition of the #becomeoneteam and safely deliver a seamless international partners, ExxonMobil and
Latin America business together with the rigs transition to all our customers.” INPEX/JODCO. The extended reach wells
in Romania and Kazakhstan will complete in “By the time the full acquisition is will tap into an undeveloped part of the giant
2023. complete, we will own and operate more Upper Zakum reservoir with the potential
The total consideration payable for Saipem than 80 additional rigs with around 11,000 to increase the field’s production capacity by
Onshore Drilling is $550 million in cash and colleagues across core geographies in the 15,000 barrels of oil per day, without the need
a 10% equity interest in the Group, with $85 Middle East and key markets in Europe to expand or build any new infrastructure.
million of cash consideration to be withheld and Latin America. This acquisition will Abdulrahman Abdullah Al Seiari,
pending completion of the remaining closings. additionally stimulate growth opportunities ADNOC Drilling CEO, said: “This incredible
In addition, Saipem SpA will be entitled to for Kenera with oilfield services, innovative achievement is in line with ADNOC Drilling’s
appoint one board member. technology and exciting energy transition quest to deliver increased efficiency for our
KCA Deutag had revenue of $1.3 billion solutions.” customers as we continue to create greater
and EBITDA of $254m in the 12 months “I want to thank our shareholders and both value for our shareholders. The delivery of this

P14 www. NEWSBASE .com Week 43 26•October•2022