ADES International Holding Ltd (LON:ADES) has completed its acquisition of four onshore rigs in Algeria from oil and gas services giant Weatherford International PLC (NYSE:WFT).
The four rigs were bought for US$40mln, with another two rigs in the country to be purchased for US$20mln within the next four weeks.
The deal forms part of a larger US$287.5mln agreement with Weatherford to buy a total of 31 onshore drilling rigs across Kuwait, Saudi Arabia, Algeria, and Southern Iraq.
Oil well driller ADES added that the purchase included all of Weatherford’s associated assets in Algeria, including around 350 employees and contractors.
Dr Mohamed Farouk, chief executive of ADES, said the “transformational” acquisition had significantly increased the size of the group as well as its exposure to the onshore oil and gas market.
He added that the deepening presence in Algeria underpinned the company’s revenue expectations for 2019.
In mid-morning trading Thursday, ADES shares were steady at 13.9p.
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