BAAR, Switzerland, Feb. 27, 2019 /PRNewswire/ -- Weatherford
International plc (NYSE: WFT) (the "Company" or "Weatherford")
today announced it has completed the sale of four contracted
drilling rigs in Algeria. The
Company expects that the remaining two rigs will transfer within
the following four weeks after relocating within Algeria. This will complete the sale of
Weatherford's land drilling operations in Algeria, which in total includes six drilling
rigs, 350 employees and contractors and associated customer
contracts to ADES International Holding PLC for $60 million in cash. Proceeds are expected to be
received in tranches with $40 million
received upon sale of the contracted rigs and $10 million for each of the rigs to be relocated,
subject to other customary adjustments agreed in connection with
finalizing the overall transaction.
In July 2018, a subsidiary of
Weatherford signed definitive agreements with ADES International
Holding PLC for the sale of Weatherford's land drilling rig
operations in Algeria,
Kuwait and Saudi Arabia as well as two idle land rigs in
Iraq, for an aggregate cash
purchase price of $287.5 million (the
"Transaction"). The Transaction includes 31 land drilling rigs and
related drilling contracts, as well as approximately 2,300
employees and contract personnel.
This is the third in a series of four closings subject to
regulatory approvals, consents and other customary closing
conditions. In December 2018, the
Company announced the closing of its Precision Drilling Services
Saudi Arabia land drilling operations for $92.5 million in cash. In November 2018, the Company announced the closing
of its Kuwait land drilling rigs
sale for $123 million in cash, and an
additional $12 million to be received
in equal $6 million increments upon
the delivery of two idle land drilling rigs from Iraq. Weatherford intends to use the proceeds
to reduce its debt.
About Weatherford
Weatherford is one of the largest multinational oilfield service
companies providing innovative solutions, technology and services
to the oil and gas industry. The Company operates in over 80
countries and has a network of approximately 700 locations,
including manufacturing, service, research and development, and
training facilities and employs approximately 26,500 people. For
more information, visit www.weatherford.com and connect
with Weatherford on LinkedIn, Facebook, Twitter and
YouTube.
About ADES International Holding
ADES International Holding extends oil and gas drilling and
production services through its subsidiaries and is a leading
service provider in the Middle
East and Africa, offering
onshore and offshore contract drilling as well as workover and
production services. Its over 4,000 employees serve clients
including major national oil companies ("NOCs") such as Saudi
Aramco, Kuwait Oil Company and Sonatrach as well as joint ventures
of NOCs with global majors including BP and Eni. While maintaining
a superior health, safety and environmental record, the Group
currently has a fleet of twenty-six onshore drilling rigs, thirteen
jack-up offshore drilling rigs, a jack-up barge, and a mobile
offshore production unit ("MOPU"), which includes a floating
storage and offloading unit. For more information,
visit investors.adihgroup.com.
Forward-Looking Statements
This press release includes forward-looking statements as defined
under federal law, including, but not limited to, those related to
the sale transactions described in this press release and the use
of proceeds therefrom. These forward-looking statements are
generally identified by the words "believe," "expect,"
"anticipate," "estimate," "intend," "plan," "may," "should,"
"could," "will," "would," and "will be," and similar expressions,
although not all forward-looking statements contain these
identifying words. Such statements are subject to significant
risks, assumptions and uncertainties. Known material factors that
could cause the Company's actual results to differ materially from
the results contemplated by such forward-looking statements are
described in the forward looking statements and risk factors in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2018 and those risk
factors set forth from time-to-time in other filings with the
Securities and Exchange Commission. Weatherford undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events, or
otherwise, except to the extent required under federal securities
laws.
Contacts:
Christoph Bausch
+1.713.836.4615
Executive Vice President and Chief Financial Officer,
Weatherford
Karen David-Green
+1.713.836.7430
Senior Vice President, Stakeholder Engagement and Chief Marketing
Officer, Weatherford
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SOURCE Weatherford International plc