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)
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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.



Dollar Holds Steady after ECB Leaves Rates Alone, Tariffs and Fed in Focus

US dollar banknotes are seen in this illustration taken May 4, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
US dollar banknotes are seen in this illustration taken May 4, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Holds Steady after ECB Leaves Rates Alone, Tariffs and Fed in Focus

US dollar banknotes are seen in this illustration taken May 4, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
US dollar banknotes are seen in this illustration taken May 4, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar traded sideways against the euro on Thursday after the European Central Bank held rates steady, and was wedged between prospects for higher Japanese rates that supported the yen and worries about political risk after Sunday's elections.

The European Central Bank left interest rates steady at 2%, as expected, on Thursday, taking a break after a year of policy easing to wait for clarity over Europe's future trade relations with the United States, Reuters reported.

"The view that the ECB is probably on hold here is probably gaining a bit more traction. We've trimmed expectations for the cuts in September to certainly less than 50/50," said Shaun Osborne, chief foreign exchange strategist at Scotiabank in Toronto.

The Japanese central bank's deputy governor, Shinichi Uchida, said Tuesday's trade deal with Washington had reduced economic uncertainty, comments that fuelled optimism in the market about the potential resumption of interest rate hikes.

Analysts believe the yen will face persistent headwinds after Sunday's upper house election, with the opposition considering a no-confidence motion.

The European Union is nearing a deal that would impose a broad 15% tariff on EU goods, diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the United States struck with Japan.

"The ECB faces a challenge that is quantitatively different from the BoJ's," said Thierry Wizman, global forex and rates strategist at Macquarie Group.

"The euro has appreciated by far more than the JPY so far in 2025, meaning that the disinflationary impulse from US import tariffs may be greater in the EU than in Japan, or the ECB may suspect as much," he added.

PMI data showed fragility in France following budget-cut proposals there, but also resilience in Germany and other parts of the euro zone.

Data showed that German business activity continued to grow marginally in July.

"As of now, there has been very little tariff impact on the hard data," said Mohit Kumar, economist at Jefferies.

ECONOMIC FALLOUT

Meanwhile, risk assets rallied as the trade deals eased fears over the economic fallout of a global trade war.

Next week the Federal Open Market Committee meets and is expected to leave rates where they are as policy makers wait for the expected impact from tariffs on inflation and growth to show up.

A number of US employment releases next week culminate with Friday's big June payrolls report, while the July Personal Consumption Expenditures Price Index and the first revision to 2nd quarter Gross Domestic Product could also move markets.

"A lot of event risk next week and not just from the Fed, we've got a lot of data next week as well, so that's probably going to shape expectations to some extent for September," Osborne said.

The euro was 0.17% firmer at $1.1786, not far from $1.1830 it hit earlier this month, which marked its strongest level in more than three years.

Against the yen, the dollar was 0.07% weaker at 146.39, and hit a fresh 2-week low earlier in the session at 145.86.

Olivier Korber, forex strategist at Societe Generale, expects the yen to strengthen further, citing support from the trade deal and prospects for higher interest rates.

Ishiba denied on Wednesday he had decided to quit after a source and media reports said he planned to announce his resignation to take responsibility for a bruising upper house election defeat.

Currencies mostly shrugged off news that US President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday, a surprise move that escalates tensions between the administration and the Fed.

The dollar index, which measures the greenback against a basket of six currencies including the euro and yen, was off 0.03% at 97.17.

In cryptocurrencies, bitcoin gained 0.33% to $118,391.37. Ethereum rose 2.14% to $3,647.18.