BAAR, Switzerland, July 11, 2018 /PRNewswire/ -- A subsidiary
of Weatherford International plc (NYSE: WFT) (the "Company" or
"Weatherford") has signed a definitive agreement with ADES
International Holding Ltd. for the sale of Weatherford's land
drilling rig operations in Algeria, Kuwait and Saudi
Arabia as well as two idle land rigs in Iraq, for an aggregate cash purchase price of
$287.5 million (the "Transaction").
The Transaction includes 31 land drilling rigs and related drilling
contracts, as well as approximately 2,300 employees and contract
personnel.
The Transaction is expected to be executed in a series of
closings, most of which will be substantially completed in the
second half of 2018, subject to regulatory approvals, consents and
other customary closing conditions. The purchase price is also
subject to a customary post-closing working capital adjustment.
Upon closing, Weatherford will use the proceeds to reduce its
debt.
"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," said Mark A.
McCollum, President and Chief Executive Officer of
Weatherford. "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. It was very important to us to
find a buyer who will continue to provide the same level of service
quality, safety and dedication to customers in this region."
Commenting on the Transaction, Dr. Mohamed Farouk, Chief Executive Officer of ADES
International Holding, said: "We are truly delighted to have signed
this agreement with Weatherford, where its reputation as one of the
world's largest oilfield service companies and its deep-rooted
knowledge and experienced professionals in over 90 countries
guarantees that this substantial asset and personnel addition will
be a net positive for ADES. 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.
Similar to our prior acquisitions, ADES is committed to the swift
value extraction of its acquired assets utilizing the Company's
focused business model."
This Transaction is the second in a series of previously
announced planned divestitures, designed to maximize Weatherford
shareholder value by refocusing the Company's portfolio on the
businesses most closely aligned with its long-term strategy and to
reduce its debt. Following this Transaction, Weatherford plans to
divest its remaining land drilling rigs through a series of smaller
sales in the coming quarters.
About Weatherford
Weatherford is one of the largest multinational oilfield service
companies providing innovative solutions, technology and services
to the oil and gas industry. The Company operates in over 90
countries and has a network of approximately 780 locations,
including manufacturing, service, research and development, and
training facilities and employs approximately 28,700 people. For
more information, visit www.weatherford.com and connect
with Weatherford
on LinkedIn, Facebook, Twitter and YouTube.
About ADES International Holding
ADES International Holding extends oil and gas drilling and
production services through its subsidiaries and is a leading
service provider in the Middle
East and Africa, offering
onshore contract drilling as well as workover and production
services. Its over 1,500 employees serve clients including major
national oil companies ("NOCs") such as Saudi Aramco and Sonatrach
as well as joint ventures of NOCs with global majors including BP
and Eni. While maintaining a superior health, safety and
environmental record, the Group currently has a fleet of thirteen
jack-up offshore drilling rigs, three onshore drilling rigs, a
jack-up barge, and a mobile offshore production unit ("MOPU"),
which includes a floating storage and offloading unit.
For more information, visit investors.adihgroup.com.
Forward-Looking Statements
This press release includes forward-looking statements as
defined under federal law, including, but not limited to, those
related to the sale transactions described in this press release
and the use of proceeds therefrom. These forward-looking statements
are generally identified by the words "believe," "expect,"
"anticipate," "estimate," "intend," "plan," "may," "should,"
"could," "will," "would," and "will be," and similar expressions,
although not all forward-looking statements contain these
identifying words. Such statements are subject to significant
risks, assumptions and uncertainties. Known material factors that
could cause the Company's actual results to differ materially from
the results contemplated by such forward-looking statements are
described in the forward looking statements and risk factors in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2017 and those risk
factors set forth from time-to-time in other filings with the
Securities and Exchange Commission. Weatherford undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events, or
otherwise, except to the extent required under federal securities
laws.
Contacts:
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Christoph
Bausch
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+1.713.836.4615
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Executive Vice
President and Chief Financial Officer
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Karen
David-Green
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+1.713.836.7430
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Vice President -
Investor Relations, Marketing and Communications
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SOURCE Weatherford International plc