National Energy Services Reunited (NESR) has completed its $1.1bn business combination with Gulf Energy SAOC (GES) and National Petroleum Services (NPS) to create an integrated energy services and solutions provider in the Middle East and North Africa (MENA) region.
The new entity will provide regional oilfield services, including drilling, completion and production services and equipment.
The agreement for the business combination was signed last November.
NESR CEO and board chairman Sherif Foda said: “When we set out on this journey, we envisioned to create a truly national services company, which has its roots in the MENA region.
“With the closing of these acquisitions, I believe we achieved our objective and have set the stage for our future growth strategy.
“Our key goals are to create employment opportunities, significantly expand local manufacturing and be recognised as one of the best service providers in the area.”
Former GES and NPS shareholders such as Mubadarah Investments, Al Nowais Investments and Sheikh Suhail Bahwan are now entitled to collectively own a major portion of the combined entity.
Their combined ownership represents around 46% of the pro-forma market capitalisation.
Capital to fund the transaction was secured from the company’s shareholders, including SCF Partners, Viburnum Funds, The Olayan Group, and Waha Capital.
In addition to revenue and cost synergies, NESR expects to benefit from in-country value creation through the delivery of superior service and technology.
The company was established as a special purpose acquisition corporation (SPAC) last year, primarily focused on investing in the oil and gas services sector.
