SES Holdings Ltd (Saxon) has merged its rig business with the business of the Schlumberger Rig Management Group. Under the terms of the transaction, 14 Schlumberger land drilling rigs and crews in Oman, Pakistan, and Venezuela will become part of Saxon’s expanded international operations.
Saxon will also provide technical drilling contracting support to existing Schlumberger joint ventures and operations in Saudi Arabia, Algeria, Iraq, and Venezuela (Lake Maracaibo).
The transaction represents Saxon’s first entry into the Middle East and North Africa region; thereby growing and diversifying the business in key international markets. The transaction not only provides Saxon with increased scale and diversity, but also provides Saxon with an established franchise and infrastructure in the Eastern Hemisphere through which to facilitate accelerated growth in the region.
As a result of the transaction, Saxon will continue to be owned by Schlumberger, affiliates of First Reserve Corporation and Saxon management.
“This agreement represents yet another step in the development of Saxon as an international drilling contractor and further strengthens our global competitive position,” says Mick McNulty, Chief Executive Officer of Saxon. “The transaction will add over 1,100 people to our organisation and provides us with a strong presence in the critical Middle Eastern market. In addition we will continue to maintain a close business association with Schlumberger in providing access to rigs in support of integrated project management well construction activities, and other contracted arrangements, while further enabling the development of new and innovative automated drilling technologies.”
Mike Mannering (pictured), President Schlumberger Rig Management, says: “Meeting customer needs with access to fit-for-project, automation-enabled and highly mobile rigs is essential for success in the high intensity drilling of today. Saxon and Schlumberger have already demonstrated the value inherent in close understanding and cooperation between drilling contractor and project manager that leads to enhanced operational performance.”
