Dhahran, Kingdom of Saudi Arabia: In order to promote the supply lines and Saudization of oil services, Sawafi Al-Jazeera (Subsidiary ofAlturki Holding), specialized in oil and gas field technology in KSA, declared its acquisition of the American Directional Drilling Company, Newsco International Energy Services USA Inc. This is an exceptional step in the history of the Company for acquiring an American Directional Drilling Company.
Directional drilling is the most productive approach in the oilfield drilling environment and the acquisition allows Sawafi to provide specialized services to its customers in the most innovative directional drilling technologies and solutions through measurement-while-drilling (MWD), which is the result of the Company's innovations.
“The acquisition of Newsco International Energy Services was a reasonable decision not only because of the Company's outcomes, but also because we are transferring innovation and expertise in the field of directional drilling to KSA. Additionally, we are contributing to the promotion of economic development based on our commitment to add economic value. It is based on the localize of the industry and drilling technologies. Further, we will continue to explore opportunities in promising sectors,” said Rami Alturki, President and CEO of Alturki Holding. “In our business, we always aim to achieve sustainable growth by creating daily economic value and positively impact on our community and environment. Shortly, we seek to invest responsibly.”
Alturki added that this acquisition comes as a result of Sawafi Aljazeera’s strengthening of its approach to promoting local portfolio for years. He said, “At the beginning of this year, we announced the inauguration of Sawafi Borets Factory for Submersible Pumps with a Saudi-Russian partnership at King Salman Energy Park (SPARK). Today, we announce the acquisition of one of the most important directional drilling companies in the petroleum industry. In the coming years, we are looking forward to more acquisitions to support localization plans in accordance with the Kingdom’s Vision 2030 to attract investment. Additionally, Sawafi Aljazeera exerts efforts to contribute to Aramco’s In-Kingdom Total Value Add (iktva) program launched in 2015."
Commenting on this acquisition, Tariq Kachouri, Managing Director of Sawafi stated, “We cope with the change made by technology and local energy market’s needs. Through Sawafi Newsco, we announce our strategy to integrate directional drilling services with our high-performance technology solutions. Through Sawafi Newsco, we will have more than nine patents that enhance local portfolio in (mechanical and electronic) MWD projects, as well as horizontal drilling engine technology. Sawafi Newsco plans to create more than 200 drilling job opportunities around the world over the coming three years.”
This acquisition opens up wide opportunities for Sawafi Newsco to transfer its expertise to KSA through a track record of achievements that is characterized by the implementation of more than 10,000 oil wells in several countries around the world. Sawafi Newsco will also be able to simultaneously operate and support several projects at full capacity due to its own appropriate technology that allows it to expand wherever drilling services are needed. Sawafi Newsco expects to steadily increase the number of patents through its research and development department in the coming period.
This acquisition will also contribute to the Saudization of global expertise in the field of drilling services and the strengthening of supply chains through an integrated service center that will be established in SPARK in Dhahran by the end of this year. This center, Sawafi headquarters, aims to increase the efficiency of drilling projects, raise the quality of operations, and achieve customers’ satisfaction with Sawafi Newsco. This will be reflected positively by reducing the cost of operations.
About Newsco
Founded in 1994, Newsco International Directional Drilling is a global Directional Drilling and MWD service company operating in the oil and gas sector, with branches in several countries such as North America and the Middle East.