Weatherford International has reached a $287.5m agreement to sell land drilling rig operations in Algeria, Kuwait and Saudi Arabia to UAE-based oil and gas drilling services firm ADES International.
The proposed disposal also includes two idle land rigs in Iraq and will allow Weatherford to cut its debt.
The acquisition will provide ADES access to 31 land drilling rigs and related drilling contracts, as well as 2,300 employees and contract personnel.
Weatherford International president and CEO Mark McCollum said: “We are pleased to have signed an agreement with ADES, a company that is known for providing high-quality and efficient services with an extensive track record of serving leading regional and global oil and gas customers.
“ADES is acquiring an efficient fleet of land drilling rigs and a dedicated workforce with more than 60 years of experience in delivering drilling efficiency, operational excellence and first-class safety.”
The company is pursuing planned divestitures in order to maximise its shareholder value and reduce debt.
The divestitures will also allow the company to shift focus to the businesses most closely aligned with its long-term strategy.
Weatherford is planning to offload its remaining land drilling rigs in the coming quarters.
ADES International CEO Dr Mohamed Farouk said: “This landmark transaction significantly expands ADES’ total fleet and more than doubles its operational fleet, in line with our strategy of executing smart acquisitions, alongside building our backlog and participation in tenders.”
Subject to certain closing conditions, including regulatory approvals, the transaction is anticipated to be closed in the second half of this year.
Weatherford operates in more than 90 countries through a network of around 780 locations, including manufacturing, service, research and development, and training facilities.
Last December, the company divested its US hydraulic fracturing business to Schlumberger for $430m.
