US onshore driller Helmerich & Payne (H&P) has closed its $1.97 billion acquisition of UK competitor KCA Deutag, and in the process it acquired the remaining 10% of KCA Deutag that had been held by Italian contractor Saipem.
Saipem confirmed Thursday that it sold the 10% stake to H&P for $89.5 million. The company had purchased the interest in 2022 when it sold its onshore drilling business to KCA Deutag.
H&P said the finalised transaction will create a global onshore drilling leader. Among other reasons, the company acquired KCA Deutag to increase its Middle East exposure more than sevenfold.
H&P also confirmed that KCA Deutag chief executive Joseph Elkhoury will not remain with the company.
“Today marks an important milestone for our company, customers and shareholders as we create an organization with an enhanced global footprint, exceptional service capability and superior technology offering,” H&P chief executive John Lindsay commented.
“We are focused on ensuring a seamless transition and delivering on the strategic and financial benefits of the transaction.”
Source: By Robert Stewart from upstreamonline.com