Sawafi Al-Jazirah’s Alturki Holdings oil arm, a company specialising in oil and gas field technology in Saudi Arabia, announced the acquisition of Newsco International for energy services and directional drilling, according to media reports.
Sawafi, the global leader in upstream technologies will now control 9 patents of directional drilling and Sawafi Newsco will operate and support 25 projects at full capacity with the help of technology that allows it to expand drilling services wherever needed.
Additionally, this acquisition deal falls under the framework of Saudi companies’ interest in making directional drilling more localised and to benefit from US innovations in this context.
This acquisition will also lead to improving the local content of drilling services, localising global expertise and strengthening supply chains through an integrated service centre to be established in King Salman Energy City in Dhahran.
Sawafi Newsco also plans on creating more than 200 drilling jobs globally in the next three years. The company also expects a steady increase of patents through its research and development department while Alturki Holdings plans to localise drilling operations and technology keeping up with Saudi Vision 2030.
Recently, Saudi Aramco CEO Amin Nasser said his company is working on increasing its crude production capacity even when investments in the oil industry are falling down and the company is challenged with reducing carbon emissions.
He told the media, “It will not happen overnight. It takes years, 2-3 years between front-end engineering and then construction will take also another 3-4 years. We are doing our share in terms of building (capacity) even though we have the adequate spare capacity today. We are bringing additional supplies to the market while we’re working on reducing our emissions at the same time.”