NESR to Merge Oilfield Services Providers GES and NPS in $1.1 Billion Deal
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National Energy Services Reunited (NESR) has agreed to acquire Gulf Energy SAOC (GES) and National Petroleum Services (NPS) for a combined price of nearly $1.1bn.
The intention of the NSER, an US-based special purpose acquisition company (SPAC), is to merge the two firms into a major oilfield services provider in the Middle East and North Africa (MENA) region.
Currently, both GES and NPS serve the MENA and Asia Pacific regions with drilling, completion and production services and equipment.
NESR Board Chairman and CEO Sherif Foda said: “We formed NESR to invest in the global oilfield services sector, and this transaction is an important first step.
“The combination of NPS and GES provides an ideal platform to create a leader in oilfield services in the MENA region.”
The UAE-based NPS has been a provider of integrated energy services in the MENA region. It claims to have a sustained long-term relationships with major international and national oil firms, with a strong market presence in GCC (Gulf Cooperation Council) countries.
GES, on the other hand, which is based in Oman, offers integrated oilfield service solutions in the MENA region. It does business with leading upstream operators in Oman and in other global markets.
Upon closing of their merger, the merged company will be headquartered in Houston, Texas. It will have three main operating sites in Dammam in Saudi Arabia, Oman and Dubai and a workforce of over 3,000 spread across more than 12 countries.
Gulf Energy SAOC CEO and Co-Founder Hilal Al Busaidy said: “We see this business combination as an excellent way to integrate two complementary businesses with highly-experienced operators, allowing the combined entity to further strengthen our footprint across key markets.”
In connection with the transaction, Abu Dhabi-based investment firm Waha Capital has agreed to divest its stake in NPS to NESR for AED251m ($68m).
NESR anticipates the merger to be finalized by the year end, subject to shareholders’ approval along with other customary closing conditions.
Source: Energy Business Review
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