Wednesday, 24 April 2024

Sawafi Acquires US Directional Drilling NEWSCO Firm

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Sawafi acquired the USA based Newsco International Energy Services USA Inc. (NEWSCO), a global leader in directional drilling and MWD (measurement while drilling) services.

The takeover deal comes within the framework of Saudi companies’ desire to localize energy and directional drilling techniques, and to take advantage of American innovations in this context, the company said in a statement.

The acquisition of one of the world’s most important oil-industry directional drilling companies is an extraordinary step in the company’s history.

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The statement did not disclose the value of the transaction, but it would enable the Saudi company to control some 9 patents in directional drilling, and Sawafi-Newsco would have the capacity to operate and support 25 full-capacity projects simultaneously for its technology that would allow it to expand where drilling services are needed.

Rami Alturki, the CEO of the Alturki Holding Company said that the decision to acquire Newsco comes from the desire to transfer expertise and innovation in the field of directional drilling to Saudi Arabia.

“This will contribute to the localization of this industry, which specializes in drilling techniques, as well as to promote economic development, based on our commitment to add economic value, this time based on the localization of the industry and drilling technologies.”he explained.

He also confirmed that “In the coming years, the company is looking forward to further acquisitions to support industry localization plans in accordance with Saudi Vision 2030 to attract investment, as well as to Sawafi early efforts to contribute to the In Kingdom Total Value Add (iktva) program launched by Saudi Aramco in 2015.”

Sawafi was established in 2013 as a wholly owned subsidiary of Khalid Alturki & Sons Holding Company and is headquartered in Dhahran, Saudi Arabia.

 Sawafi is backed by the strength and reputation of its parent company, the Alturki Holding Company, one of the top family-owned businesses in the Kingdom of Saudi Arabia, a premier investor, sustainability pioneer and key facilitator in the development of modern Saudi Arabia since 1975, with deep roots as a reliable partner to global oil & gas superpower Saudi Aramco.

Established in 1994 and headquartered in Alberta, Canada, Newsco is a global directional drilling and MWD service provider to the onshore oil & gas industry with exposure in North America, Peru, India and the Middle East.

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