Page 6 - MEOG Week 16 2022

MEOG FINANCE & INVESTMENT MEOG

Indian driller sells

more jack-ups to ADES

SAUDI ARABIA INDIAN drilling company Aban Offshore this also covers Algeria and Saudi Arabia. Earlier this
week announced that it has agreed a deal to sell year, it completed the relocation of its headquar-
four jack-up rigs to Saudi Arabia’s ADES Group ters from Egypt to Al-Khobar in Saudi Arabia’s
as the companies plot opposing courses. Eastern Province.
The Indian company announced on April Meanwhile, sources told Bloomberg last week
14 that it had “approved the sale of Rigs Deep that fellow Saudi firm Arabian Drilling Co.,
Driller 2, Deep Driller 4, Deep Driller 5 and owned by the local Industrialization & Energy
Deep Driller 6”, which were owned by step down Services Co. (TAQA, 51%) and Schlumberger
subsidiaries, for $106mn. (49%), had hired banks for a potential initial
Aban said that Deep Driller 2 and Deep public offering (IPO) while also considering
Driller 4 would raise $26mn each, with Deep merging with ADES.
Driller 5 and Deep Driller 6 raising $27mn. The move is seen creating a ‘national cham-
In February, ADES bought the Indian firm’s pion’ for drilling, and while neither company
Deep Driller 1 for $12mn, while Aban sold three has yet commented on the plans publicly, such
more units in November, with the Deep Driller a merger would likely be an effort to emulate the
3 going to Abu Dhabi National Oil Co.’s ADNOC success of ADNOC Drilling, the subsidiary of
Drilling subsidiary for $31.5mn and the Aban Abu Dhabi National Oil Co. (ADNOC) and the
Abraham sold for scrap. region’s biggest drilling company.
The latest sale marks another step in Aban’s
divestment drive, while ADES is moving in the Maersk deal
opposite direction. Shortly before going to press, Denmark’s Maersk
A majority share in ADES was acquired by Drilling said it had agreed a $42.5mn cash deal
Innovative Energy in March last year with the to sell its Maersk Convincer jack-up to ADES.
financial backing on the Saudi Public Investment The unit, which can be leveraged in benign
Fund (PIF), delisting from the London Stock offshore environments, is expected to be deliv-
Exchange where it was listed in 2017. The deal ered to ADES following completion of its current
valued ADES at $516mn. assignment with Brunei Shell Petroleum (BSP),
The company’s focus is mainly on Egypt, but not later than September 15.™

P6 www. NEWSBASE .com Week 16 20•April•2022