NTS AMEGA is a leading global provider of advanced manufacturing, complex tool repair and rental solutions for the oil and gas sector.

Headquartered in the United Arab Emirates (UAE), NTS has strategically located support hubs in the USA, Canada, KSA, Singapore, and Norway.In October 2023, Alpha Dhabi acquired a 51 percent equity stake in NTS, which Enersol has agreed to acquire, at the same valuation. The transaction completion remains subject to necessary regulatory approvals and closing adjustments, according to a joint news release.

NTS provides a range of solutions for technically challenging processes in the drilling industry to improve efficiency and reduce costs. This includes high tolerance manufacturing of complex rotary steerable heads, measuring / logging collars, carriers and accessories, drilling tools, topside, subsea, and process system components. These specialized repair processes are used to extend the life and availability of measuring while drilling, logging while drilling, non-magnetic drill collars, and other drilling accessories, according to the release.

NTS reported 2023 revenue of over $120 million, with a robust EBITDA margin and a free cash flow yield of over 10 percent. This presents Enersol’s shareholders with a significant value proposition that can be unlocked by NTS’s healthy profitability, attractive valuation multiples, and strong cashflow generation, the release stated.

The acquisition of NTS is aligned with Enersol’s strategic vision to become an oilfield services technology-centric investment platform, where it is actively advancing plans to acquire and invest in multiple businesses to create a scalable technology ecosystem.

Further, the NTS acquisition will be instrumental in providing scalable innovative technologies to Turnwell Industries, a recently established company focused on unlocking the UAE’s unconventional energy resources through its support of innovative AI smart drilling design, completions engineering, and production solutions.

In June, Enersol announced the acquisition of an additional 42.206 percent equity stake in drilling technology firm Gordon Technologies LLC for consideration of approximately $270 million. Once completed, the transaction will make Enersol the majority equity holder. The consideration is based on a valuation in line with the one underpinning the initial 25 percent stake purchase announced in January, ADNOC said in an earlier news release.

Gordon is a leading provider of measurement while drilling (MWD) technology to the oil and gas industry. MWD technology measures key information near the drill bit and transmits data to the surface without interrupting normal drilling operations.ADNOC Drilling in May entered into a strategic joint venture with Alpha Dhabi for Enersol, enabling scalable innovative technologies to support cutting-edge AI smart drilling design, completions engineering, and production solutions.

ADNOC Drilling describes itself as the largest drilling and integrated drilling services (IDS) company in the Middle East by fleet size, owning and operating one of the largest multi-disciplinary drilling fleets in the world. The company said it is a critical link in the upstream business of its parent company Abu Dhabi National Oil Company (ADNOC), as ADNOC responsibly accelerates its production capacity targets in light of globally increasing demand for energy. ADNOC Drilling incorporated IDS into its portfolio in 2018 and now offers a total solution of start-to-finish wells and associated services.

Source:https://www.rigzone.com