KCA Deutag, a global oil & gas services firm based in Aberdeen, is planning to purchase Dalma Energy from Saudi Arabia & Oman. Experts view the move as the firm’s strategy to expand its business across the Middle East.
Depending upon the enterprise valuation of USD 660 million, the acquisition deal is projected to be worth USD 320 million that includes USD 100 million of cash and USD 220 million in shares that are to be issued to Dalma’s investors. For the record, the firm had accrued a revenue of more than USD 1.16 billion in 2017, while Dalma’s revenue was recorded at nearly USD 312 million toward the end of the same year.
According to the CEO of KCA Deutag, the acquisition of Dalma Energy is likely to enable the firm to strongly expand its customer base in the Middle East. Post the finalization of the agreement, Dalma has been speculated to own nearly 22% of the shares in KCA Deutag and will have a choice to nominate nearly 2 directors to the board. The key officials of both the firms have announced that the joint business will operate under the trade name KCA Deutag and will have a combined workforce of nearly 9,700 personnel.
As per the company sources, the acquisition of Dalma Energy business will not only establish its position in Oman as a leader in the onshore drilling activities but will also help the firm offer operational expertise across the Saudi Arabia onshore drilling sector.
For the record, Dalma Energy LLC operates in thirty-one land rigs, including the Gulf states, North Africa, and Asia. Industry analysts predict that the purchase of the assets of Dalma Energy in Oman & Saudi Arabia by KCA Deutag is likely to make the firm one of the largest owners of land-based drilling rigs across the globe.
Dhananjay develops content for Market Size Forecasters. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted for a career in writing and now pens d...