Saudi Arabia's Industrialisation and Energy Services Company (TAQA) plans to acquire two companies in the North American oilfield services technology and manufacturing sectors by the end of the year. The announcement made at the Offshore Technology Conference (OTC) in Texas, is part of the company's 2021 strategy to become a leading oilfield services and equipment (OFSE) provider.
TAQA has allocated approximately $1.2bn for new investments and acquisitions over the next three years to build up its capabilities and footprint in oilfield services, equipment manufacturing and new technologies across the wider MENA region and North America.
The company is currently in discussions to acquire two companies in North America this year, a major step in accelerating its 2021 transformation and growth strategy. These acquisitions would add specific new technologies and manufacturing capabilities to TAQA's existing integrated OFSE offering. TAQA is also reviewing a number of further investment and acquisition opportunities in the wider Middle East region, as part of its goal to become a leading regional player.
The oilfield services and equipment provider already has a substantial portfolio of wholly owned companies, subsidiaries and affiliates that were established in joint ventures with global leaders across several oilfield equipment and services markets, focusing on four core businesses: contact drilling, oil country tubular goods (OCTG) manufacturing, geophysical mapping, and TAQA's wholly-owned FRAC and wells services company.
Today, TAQA provided further details on its 2021 strategic transformation plan, which has been underway since 2017 when it acquired Canadian well services company, Sanjel. Since that time, TAQA invested in a 50,000-horsepower FRAC fleet that will be commissioned and fully operational later this year and expanded its drilling subsidiary, the Arabian Drilling Company (ADC), with the commissioning of an additional 16 onshore rigs in 2018.
Most recently, TAQA also announced that ADC will acquire Schlumberger's Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan for $415mn.
"TAQA's planned investments in North America complement our Middle East expansion ambitions and are a key component of our 2021 strategy, which aims to deliver the best, most advanced integrated oilfield services and manufacturing solutions to our clients," said Azzam Shalabi, CEO of TAQA. "North America is home to some of the world's leading oilfield services companies and represents an exciting investment and expansion opportunity for TAQA.
"We are actively seeking to tap into the latest technology and manufacturing practices in this market, especially in the unconventional resources space, where we see significant growth opportunities," he continued. "These new offerings and expertise will be brought back to our clients in the Middle East region to ensure they get access to world-class, high quality services."