Saudi TAQA Unveils $1.2Bn Expansion Program

Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US, August 22, 2018. (Reuters)
Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US, August 22, 2018. (Reuters)
TT
20

Saudi TAQA Unveils $1.2Bn Expansion Program

Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US, August 22, 2018. (Reuters)
Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US, August 22, 2018. (Reuters)

Saudi Arabia's Industrialization and Energy Services Company (TAQA) announced Monday its plan to start new investments and acquisitions, worth SAR4.5 billion ($1.2 billion), over the next three years.

The announcement was made on the sidelines of its participation in the Offshore Technology Conference (OTC) in Texas as part of the company’s 2021 strategy to become a leading oilfield services and equipment (OFSE) provider.

TAQA seeks to build up its capabilities and footprint in oilfield services, equipment manufacturing and new technologies across the wider MENA region and North America.

“TAQA's planned investments in North America complement our Middle East expansion ambitions and are a key component of our 2021 strategy, which aims to deliver the best, most advanced integrated oilfield services and manufacturing solutions to our clients,” said CEO of TAQA Azzam Shalabi.

“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,” he added.

“These new offerings and expertise will be brought back to our clients in the Middle East region to ensure they get access to world-class, high quality services.”

TAQA’s expansion program includes acquiring two companies in the North American oilfield services technology and manufacturing sectors by the end of the year.

These acquisitions would add specific new technologies and manufacturing capabilities to its existing integrated OFSE offering.

It is also reviewing a number of further investment and acquisition opportunities in the wider Middle East region as part of its goal to become a leading regional player.

TAQA provided further details on its 2021 strategic transformation plan, which has been underway since 2017, when it acquired Canadian well services company, Sanjel.

Since then, it has invested in a 50,000-horsepower FRAC fleet that will be commissioned and fully operational later this year and expanded its drilling subsidiary, the Arabian Drilling Company (ADC), with the commissioning of an additional 16 onshore rigs in 2018.

Economist Abdulrahman al-Atta told Asharq Al-Awsat these acquisitions will enhance production and services, increase financial capacity, efficiency and competitiveness and help secure financing from international banking institutions.

He noted that the expansion of activity, market acquisition, increased competitiveness and profit to entice investors in the field of energy technology provide new opportunities to enable SMEs to grow beyond some of the problems they face.



IMF Sees 'Some Progress' on Lebanon Reforms, But Says External Support Needed

People enjoy the sunset at Ramlet Al Bayda seaside in Beirut, Lebanon, 27 May 2025.  EPA/WAEL HAMZEH
People enjoy the sunset at Ramlet Al Bayda seaside in Beirut, Lebanon, 27 May 2025. EPA/WAEL HAMZEH
TT
20

IMF Sees 'Some Progress' on Lebanon Reforms, But Says External Support Needed

People enjoy the sunset at Ramlet Al Bayda seaside in Beirut, Lebanon, 27 May 2025.  EPA/WAEL HAMZEH
People enjoy the sunset at Ramlet Al Bayda seaside in Beirut, Lebanon, 27 May 2025. EPA/WAEL HAMZEH

Lebanon has made progress on reforms needed to revive its economy but still has key steps to take and will need external funding on concessional terms, the International Monetary Fund (IMF) said on Thursday after a week of meetings in Beirut.

Lebanon's economy went into a tailspin in late 2019, prompted by decades of profligate spending by the country's ruling elite.

Reforms required to access IMF funding were repeatedly derailed by political and private interests, according to Reuters.

Lebanon's President Joseph Aoun and Prime Minister Nawaf Salam, both of whom took office in early 2025, pledged to prioritize reforms and secure an IMF financing agreement - but the country now faces additional needs with the widespread destruction and displacement caused by Israel's military campaign last year.

“The authorities have made some progress recently, including the amendment of the Bank Secrecy Law and submission of a new bank resolution law to Parliament,” the IMF's Lebanon mission chief Ramirez Rigo said in a written statement.

Rigo added that his mission held “productive discussions” with Lebanese officials, including on restoring the viability of the banking sector, fiscal and debt sustainability and enhancing anti-money laundering and terrorism financing measures.

He said Lebanon's medium-term fiscal framework should support the restructuring of Eurobond debts, which Lebanon defaulted on in 2020, leading to a sovereign default on its $31 billion of outstanding international bonds.

“Given Lebanon's substantial reconstruction needs, limited fiscal space and lack of capacity to borrow, the country will require significant support from external partners on highly concessional terms,” the IMF statement said.

The World Bank estimated Lebanon's recovery and reconstruction needs following Israel's military campaign at $11 billion. But the US has said it opposes any reconstruction funds to Lebanon until Hezbollah - the Iran-backed Lebanese armed group that fought Israel last year - is disarmed.