ABERDEENSHIRE drilling services firm KCA Deutag is to be acquired by American competitor Helmerich & Payne in a deal worth nearly £1.5 billion.
H&P said the deal will see them gain “leading positions” in the US and Middle East and become a “global leader in onshore drilling”.
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KCA Deutag, headquartered in Porthlethen, has a significant land drilling presence in the Middle East alongside operations in Europe, South America and Africa.
It also maintains “asset-light” offshore management contracts in the North Sea, Angola, Azerbaijan and Canada.
CEO of KCA Deutag, Joseph Elkhoury, said: “This announcement represents a significant milestone in the strategic transformation journey of KCA Deutag and delivers benefits to all stakeholders: our employees, customers, shareholders and the communities where we live and work.
“We look forward to joining H&P, combining the strengths of our people together with our geographical footprint, to create an organisation with an unrivalled global network, service capability and technology offering.
“The size, scale and financial strength of the combined organisation will provide a stable foundation for long-term growth and diversification to safeguard a sustainable and prosperous future for our people.”
He added: “Once completed, this transaction is expected to deliver multiple growth opportunities for our people and customers while facilitating value realisation for our investors.”
President and CEO of H&P, John Lindsay, commented, “This is a historic and transformative transaction for the company, and we are excited about what this means for H&P’s future, as it accelerates our international expansion particularly in the Middle East and enhances the Company’s global leadership in onshore drilling solutions.
“KCA Deutag’s assets and operations will add resilient revenues, providing greater earnings visibility and cash flow generation. As a result, we expect to generate sizeable incremental cash flows and are confident this transaction will deliver near- and long-term growth and value creation for H&P shareholders.”
