Saudi Arabia's Industrialization and Energy Services Company (TAQA) announced on Thursday that it would acquire AZR Technologies, a Dhahran-based Electric Wireline Well Logging Company.
The transaction is part of TAQA's strategy to expand its Oilfield Services capabilities in the Middle East and North Africa region.
By acquiring AZR Technologies, TAQA Oilfield Services and Equipment (TAQA-OFSE) (a subsidiary of TAQA) will deliver petrophysical, reservoir, and geological data critical to well performance and reservoir evaluation in both rig and rigless operations. It will also expand its intervention capabilities by offering bundled wireline services and coiled tubing conveyance for well diagnostics, repair, and remediation solutions.
This strategic acquisition of AZR Technologies will allow TAQA OFSE access to the Electric Wireline well logging market that is valued at more than 1.5B SAR per year in the Kingdom of Saudi Arabia.
Commenting on the acquisition, Jamil Al-Naser EVP Operations of TAQA, said the acquisition meets the company's corporate strategy and is fully aligned with the Kingdom's Vision 2030.
Al- Naser added: "Our relationship with AZR started as a local supplier of Electric Wireline to our Coiled Tubing operations, driven by the Saudi Aramco IKTVA program and TAQA's commitment to national suppliers' development. We decided to further expand the relationship and aggressively invest in AZR to develop a world-class Electric Wireline company capable of delivering state of the art petrophysical, reservoir, and geological quality data to our customers. With AZR acquisition and aggressive investment plan, we will continue to focus on creating, sustaining, and realizing value across our entire portfolio. Our investment plans are open to identify and pursue profitable growth opportunities bringing differentiation to our customers and utmost shareholders' value."
The acquisition is expected to close in the next six weeks, after which AZR will start full integration into TAQA-OFSE operations benefiting from further synergies and a more robust support structure.
Established in 2003, TAQA is collectively owned by the Kingdom's Public Investment Fund (PIF) and a host of prominent Saudi joint-stock companies and institutional investors. The company has a rich portfolio of fully-owned companies, subsidiaries, and affiliates established in joint ventures with global leaders across several oilfield equipment and services markets focusing on four core businesses: Contract drilling, Oil Country Tubular Goods (OCTG) manufacturing, geophysical mapping, and TAQA's wholly-owned Oilfield Services and Equipment.
