TAQA, the Kingdom of Saudi Arabia’s Industrialisation and Energy Services Company, plans to acquire two companies in the North American oilfield services technology and manufacturing sectors by the end of 2019. The acquisition is a part of the company’s 2021 strategy to become a futuristic oilfield services and manufacturing solutions provider to its clients.
The company has allocated reserves worth $1.2 billion for new investments and acquisitions over the next three years. TAQA’s acquisitions come in an effort to boost its capabilities and footprint in oilfield services, equipment manufacturing, and new technologies across the MENA region and North America.
The announcement was made during the Offshore Technology Conference (OTC) in Texas. Azzam Shalabi, CEO of TAQA, said the company’s plans to invest in North America is in line with its ‘Middle East expansion ambitions’, especially with North America being the hub to some of the leading oilfield services companies worldwide. The plan might turn out to become an ‘exciting investment and expansion opportunity for TAQA’, he believes.
Currently, the company is in talks to speed up the acquisitions. The two acquisitions will include specific new technologies and extend the manufacturing capabilities of TAQA’s existing integrated oilfield services and equipment (OFSE) offering, regional media reported. The new possibilities will be provided to TAQA’s clients in the Middle East in order to ensure they receive ‘world-class, high quality services’.
“We are actively seeking to tap into the latest technology and manufacturing practices in this market, especially in the unconventional resources space, where we see significant growth opportunities,” Sahalbi said.
Its 2021 strategic transformation plan has been in progress since 2017 when it acquired Canadian-based energy services Sanjel.