Fossil Energy – Acquisition
ADNOC Drilling Company and Alpha Dhabi Holding announced yesterday that their joint venture Enersol has agreed to acquire a 95% equity stake in Deep Well Services (DWS), for approximately $223 million including performance-based payments.
Completion of the transaction is subject to obtaining the necessary regulatory approvals and other customary conditions precedent.
Established in the United States in 2008, DWS specializes in several advanced technologies and services within the energy sector. Its patented Hydraulic Completion Units (HCU) are designed for high-pressure, long lateral, and multi-well completion operations, enabled by its data analytics software, BoreSite, and its training and development, which offers globally accredited programs that enhance operational safety and efficiency.
DWS has an additionally established joint venture; AutoSep Technologies, which focuses on automating flowback operations. DWS works in numerous basins across North America and its services have been adopted by over 70 E&P companies ranging from small-private operators to large-cap national energy companies.
DWS, through Enersol, will play a role in contributing to the development of the UAE’s conventional and unconventional energy resources. Enersol companies will support the delivery of ADNOC Drilling’s recent $1.7 billion contract award to deliver 144 unconventional wells to ADNOC Group by leveraging the various technologies available to it.
The acquisition serves as an additional marker in building Enersol’s next-generation technology portfolio, which will present the JV with an additional avenue for growth across untapped markets as well as further upside potential in the long term.
This is Enersol’s fourth acquisition, having previously agreed to acquire, subject to regulatory approvals, EV, a downhole visual analytics company, a 51% stake of NTS Amega, a leading global manufacturer of advanced precision equipment and solutions provider for the energy sector, and a 67% stake in Gordon Technologies, a U.S.-based provider of measurement while drilling services.
