Sawafi Al-Jazeera Oilfield Products and Services Co. Ltd. (“Sawafi”) has acquired the entire share capital of Newsco International Energy Services USA Inc. and certain IP and directional drilling assets of Newsco International Energy Services Inc., Newsco Directional Support Services Inc. and Telemetrix USA Inc., together the “Target”.
The Target formed part of the wider Newsco group (“Newsco”), certain entities and assets of which will be retained by the existing shareholders under a different operating name.
This transaction marks the first Saudi private business to have acquired an American Directional Drilling Company.
Sawafi is a leading provider of drilling enhancement, artificial lift and well characterization products and services to the Saudi Arabian oil and gas industry. The company is rapidly expanding its range of product and services to focus on four key sectors of the upstream industry: i) drilling products and services, ii) well construction and well completion iii) well intervention and iv) reservoir and production optimization.
Sawafi was established in 2013 as a wholly owned subsidiary of USSBC member Khalid Alturki & Sons Holding Company and is headquartered in Dhahran, Saudi Arabia.
Established in 1994 and headquartered in Alberta, Canada, Newsco is a global directional drilling and MWD service provider to the onshore oil & gas industry with exposure in North America, Peru, India and the Middle East.
Newsco offers a suite of directional drilling products and services, including proprietary drilling motors and MWD / gamma ray equipment. Drilling technologies include linear mud pulse drivers, rotary mud pulse, custom drilling optimization software and top mounted rotary mud pulse drivers.
Through its Telemetrix subsidiary, Newsco manufactures and assembles MWD tools for its own use and other directional drilling companies.
Proprietary equipment and technology is protected through Newsco’s IP portfolio.
Simmons Energy | A Division of Piper Sandler served as the exclusive corporate finance advisor to Sawafi.