KARACHI: Schlumberger Ltd, a Texas-based drilling company, will remain in Pakistan despite its onshore drilling rigs business acquired by Arabian Drilling Company (ADC), a subsidiary of Saudi Arabia’s Industrialization and Energy Services Company (TAQA), for $415 million (SAR 1.56 billion), officials confirm.
TAQA on Sunday announced that its drilling subsidiary, ADC, has agreed to acquire Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan as part of its planned $1.2 billion acquisitions of drilling rig ventures.
“It has been reported that it is a simple merger but Schlumberger will remain in Pakistan”, Sher Afghan Khan, Spokesman of Pakistan’s Petroleum Division, told Arab News.
Through this expansion, ADC will become an industry powerhouse, operating a superior fleet of 58 onshore rigs and 9 offshore rigs across the Middle East and North Africa (MENA) region. The combined firm will have more than 5,900 employees and builds on ADC’s long-standing reputation of reliably serving national and international oil and gas companies for over 55 years, statement posted on TAQA official website says.
The transaction will combine the outstanding track records of the parties with respect to operations, quality of service, health, safety and environment. It will also create economies of scale and cost synergies, making ADC a regional leader, encompassing a diversified, multi-country and multi-client offering.
“This acquisition is fully aligned with Saudi Vision 2030. It unlocks value and drives growth across our entire value chain through a more integrated regional approach, while positioning a leading Saudi company as a global player,” TAQA chief executive officer Azzam Shalabi, who is also chairman of the ADC Board was quoted as saying in an interview at Dammam, Saudi Arabia.
Taqa plans to use about $800 million of its own funds for the planned acquisitions and may seek loans or sell bonds or sukuk for the rest, Shalabi said. It may consider an initial public offering in 2021, according to the website post.
As the transaction is expected to close in the second half of 2019, subject to regulatory approvals, the officials hope that it will benefit all stakeholders. “We look forward to supporting ADC in the next phase of its expansion and have full confidence that this will benefit all stakeholders, most notably our regional clients,” Shalabi added.
Schlumberger, provides technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. reported revenues of $32.82 billion in 2018. The company reported $2,338 million revenue generation from Middle East & Asia region during January- March 2019, which is two percent higher as compared to the same period last year.
Schlumberger to remain in Pakistan despite merger with Saudi TAQA: Petroleum Ministry
Schlumberger to remain in Pakistan despite merger with Saudi TAQA: Petroleum Ministry
- A $1.2 bn deal will add company's onshore oil-rig business in Kuwait, Oman, Iraq and Pakistan to Arabian Drilling’s Saudi operations
- Taqa agreed on Sunday to pay around $415 million for Texas-based Schlumberger Ltd.’s Middle East drilling-rig business
Pakistani, Uzbek leaders urge business community to help achieve $2 billion trade target
- Pakistan and Uzbekistan have steadily increased economic ties in recent years, with bilateral trade volume reaching nearly $500 million
- President Shavkat Mirziyoyev says business community is ‘most important bridge’ linking both nations, promising favorable business climate
ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif and Uzbekistan President Shavkat Mirziyoyev on Friday urged businesspersons from both countries to help the two countries achieve a bilateral trade target of $2 billion within the next five years.
The two leaders made the call while addressing traders, industrialists from both countries at the Pakistan Uzbekistan Business Forum in Islamabad during President Mirziyoyev’s visit to the South Asian country.
Pakistan and Uzbekistan have steadily increased economic ties in recent years as Pakistan offers landlocked Central Asian states greater access to global markets, aiming to position itself as a regional transit hub.
Pakistan was the first Central Asian partner with which Uzbekistan signed a bilateral Transit Trade Agreement, along with a Preferential Trade Agreement in March 2022, covering 17 items, which became operational in 2023.
“We agreed that political goodwill must be matched by economic actions and words must be converted into implementation,” Sharif said, citing his visit to Tashkent last year which had helped brought annual bilateral trade to nearly $450 million.
“Today, ladies and gentlemen, we will strengthen last night’s protocol by signing another document today, which will give you vistas of opportunities to sit down together, B2B (business to business), have wonderful discussions with your counterparts and come to arrangements in terms of joint ventures, investments in Uzbekistan and Pakistan.”
Sharif was referring to the protocol signed between the two countries on Thursday to establish a joint working group to formulate a five-year action plan to take bilateral trade to $2 billion. Both sides also signed 28 agreements focused on areas such as defense cooperation, climate change, disaster risk reduction, disaster management, agriculture, exports of fruits, and mining and geosciences.
President Mirziyoyev said the increase in bilateral trade to half-a-billion dollars was an outcome of their talks held in Tashkent in Feb. last year.
“Over the course of very comprehensive and detailed discussions yesterday, we together decided that this is far [from] being enough,” he told businessperson from both countries.
The Uzbek president said business community is the “most important bridge” in linking the two nations and it was their job as heads of the state to ensure favorable conditions for them.
“Success of this agreement is in your hands,” he told the attendees, assuring them of eliminating any obstacles and bottlenecks in the process.
Later, Pakistan President Asif Ali Zardari conferred the Nishan-e-Pakistan, the highest civilian award of the country, on President Mirziyoyev at a televised ceremony.
The Nishan-e-Pakistan is awarded to individuals who have rendered services of highest distinction to the national interest of Pakistan and has often been conferred on visiting Heads of State as a mark of respect and friendship.
