Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Videos

Oil & Gas
Exploration & Development
Return to: EBR Home | Oil & Gas | Exploration & Development

KCA Deutag to acquire Oman and Saudi Arabia assets of Dalma Energy

EBR Staff Writer Published 06 March 2018

KCA Deutag (KCAD), a global drilling and engineering contractor, has signed an agreement to acquire Oman and Saudi Arabia businesses of Dalma Energy for $320m.

Upon completion of the deal, the combined business will continue to trade as Enlarged KCA Deutag (KCAD). It will own and operate a fleet of 83 land rigs globally with a combined workforce of approximately 9,700 people.

As per the agreement, Dalma’s shareholders will receive $100m in cash and an equity shareholding of approximately 22% in the enlarged KCAD Group, valued at $220m.

KCAD CEO Norrie McKay said: "The acquisition of Dalma’s operations in Saudi Arabia and Oman will significantly strengthen our foothold in the Middle East, and provide us with a stronger platform to develop and grow our business in what is an exceptionally attractive region.

“Dalma’s operations are an excellent strategic fit, not only consolidating our position in Oman as the country’s leading owner and operator of onshore drilling rigs but also enabling us to offer our operational expertise in the substantial Saudi Arabian onshore drilling market, which has been a key target for KCAD."

The acquisition is expected to position KCAD as one of the world’s premier international drilling and engineering contractor.

KCA Deutag said that the acquisition strengthens its core Middle Eastern operations in addition to creating a platform to capture growth opportunities in major markets.

Additionally, Enlarged KCAD Group will be one of the largest owners and operators of land rigs in the Middle East region.

KCAD said in a statement: “The KCAD group established its land drilling presence in Oman in 1964, and currently owns and operates eight rigs in the country, five of which were constructed between 2014 and 2015.

“The transaction will add 29 high quality land rigs to the group’s portfolio, twenty in Oman and nine in Saudi Arabia.”

The transaction is due to be closed in the second quarter of 2018. It is subject to the fulfillment of certain conditions precedent.