Weatherford International PLC completed the sale of its Precision Drilling Services Saudi Arabia land drilling operations, including 11 onshore drilling rigs, 923 employees and associated customer contracts to Dubai-based ADES International Holding Ltd. for $92.5 million in cash, according to a company press release.
In July 2018, a Weatherford subsidiary signed definitive agreements with ADES International Holding Ltd. for the sale of Weatherford’s Middle Eastern land drilling rig operations in Algeria, Kuwait and Saudi Arabia as well as two idle land rigs in Iraq, for an aggregate cash purchase price of $287.5 million. The transaction includes 31 onshore drilling rigs and related drilling contracts, as well as approximately 2,300 employees and contract personnel.
This is the second in a series of four closings, the majority of which are expected to be completed by year-end 2018, subject to regulatory approvals, consents and other customary closing conditions. In November 2018, Weatherford announced the closing of the Kuwait land drilling rigs sale for $123 million in cash, and an additional $12 million in cash pending the delivery of the two idle land drilling rigs from Iraq.
Weatherford will use the proceeds to reduce its debt. The company reported a $199 million loss on $1.4 billion of revenue during the third quarter.