APICORP completes exit from National Petroleum Services
Despite challenging market conditions, National Petroleum Services exhibited consistent growth and has transformed into a leading provider of integrated energy services in the MENA and Far East Asia regions.
Arab Petroleum Investments Corporation (APICORP) announced that it has completed the sale of its 29% equity investment in National Petroleum Services (NPS) to National Energy Services Reunited Corporation.
APICORP’s original investment in NPS was made in 2014 as part of a consortium of regional investors whom amongst them acquired 90% of the business. The investment formed a key part of APICORP’s strategy to diversify its investment portfolio into the oil and gas services sector and reflected its commitment to support the Arab energy companies that have the potential for growth and value-creation.
The key investment driver was to develop a reliable champion oil field services (OFS) provider in the region that would be able to serve the oil and gas industries, especially during turbulent periods. Despite challenging market conditions, NPS exhibited consistent growth and has transformed into a leading provider of integrated energy services in the MENA and Far East Asia regions. NPS maintains long-term relationships with leading international and national oil companies across the region and a strong market presence in Gulf Cooperation Council (GCC) countries.
Moreover, NPS continued to play a development part in the regions it operates in by supporting their development mandates. In Saudi Arabia, NPS is collaborating with Saudi Aramco to execute its 5-year IKTVA programme entailing two major projects in partnership with local and international world-class manufacturers and the development of training opportunities for Saudi talent.
NESR was listed on NASDAQ as a Special Purpose Acquisition Company (SPAC) in June 2017. In June 2018, NESR completed the acquisition of NPS after the transaction was approved by Securities and Exchange Commission in United States and NESR’s shareholders. One of the key motives of selling to NESR was their similar vision of creating a champion OFS provider in the region, and NESR, as new shareholder, has the talent and capacity to achieve this objective. Through the acquisition of NPS, NESR will continue to serve the MENA and Asia Pacific regions by offering a mix of drilling, completion and production services and equipment.
Commenting on the transaction, APICORP’s CEO Dr Ahmed Ali Attiga said: "The sale of NPS marks another important milestone for APICORP. We are pleased to have played a significant role in financing the growth plans of NPS while providing strategic guidance to its well experienced management. On the strength of its shareholders, management team, and its strong financial track record, NPS has been a highly successful investment and has enabled the consortium partners to realise significant value, a fitting endorsement of our strategy. APICORP remains committed to driving the regional economic growth through our two-business arms of equity investment and debt financing, a capability that makes us one of the sector’s strongest and most robust financial institutions in the MENA region.”