Weatherford sells four onshore drilling rigs to ADES in Algeria

Weatherford International has closed the $40m transaction to sell four contracted onshore drilling rigs to ADES International in Algeria.

The transaction is part of a $287.5m deal signed last July by ADES to acquire Weatherford’s 31 onshore drilling rigs, related drilling contracts and 2,300 employees across Kuwait, Saudi Arabia, Algeria and southern Iraq.

The land drilling operations in Algeria to be acquired by ADES include a total of six rigs, 350 employees and contractors, as well as associated customer contracts, for a total consideration of $60m.

Weatherford stated that the transfer of the remaining two rigs and a contingent payment of $20m will be completed within the coming four weeks after relocation within Algeria. The transfer will mark the sale of the company’s land drilling operations in the country.

ADES International chief executive Dr Mohamed Farouk said: “We have now effectively completed the Weatherford acquisition, which is transformational for the group, significantly increasing our size, visibility and exposure to the onshore oil and gas market.

“We are also particularly delighted to be deepening our presence in Algeria and further underpin our revenue expectations for 2019.”

In December, Weatherford closed the Precision Drilling Services Saudi Arabia land drilling operations for $92.5m.

ADES also acquired the Kuwait land drilling rigs in November.

The proceeds from the sale of the land drilling rigs will be used by Weatherford to reduce its debt. Weatherford also agreed to divest its surface data logging business to oilfield services company Excellence Logging last year.

Meanwhile, ADES noted that it is working on obtaining new contracts and extensions for the newly acquired rigs.

ADES International offers onshore and offshore oil and gas drilling and production services in the Middle East and Africa.