Saudi Arabia's Taqa to acquire two North American energy firms by year-end
Acquisition part of a $1bn three-year investment plan
Saudi energy firm Taqa is set to acquire two North American energy firms by year-end, as part of a $1 billion investment plan over the next three years.
Around $1.2 billion has been allocated to acquire firms in the oil services, equipment manufacturing segments in the Mena region as well as North America.
"North America is home to some of the world’s leading oilfield services companies and represents an exciting investment and expansion opportunity for Taqa,” said Taqa chief executive Azzam Shalabi.
"We are actively seeking to tap into the latest technology and manufacturing practices in this market, especially in the unconventional resources space, where we see significant growth opportunities,” he added.
Energy services companies operating in Saudi Arabia, the world’s biggest exporter of oil, have seen a record flurry of project activity on the back of upstream investment following the recovery in crude prices.
Last month, Taqa, which is owned by the kingdom’s Public Investment Fund, agreed to acquire Schlumberger’s drilling business in the Middle East for $415 million (Dh1.5 billion) through a subsidiary.
Its Arabian Drilling Company acquired the German energy services firm’s drilling rigs business in Kuwait, Oman, Iraq and Pakistan, a transaction the company said would leave it with one of the "largest rig fleets, client portfolios and geographic footprint” in the Middle East.
A number of opportunities in the Middle East are currently under review, according to Taqa, which added it is looking to gain a bigger footprint in the region.
Updated: May 6, 2019 04:39 PM