Alinma Bank, a Saudi-based financial institution, is providing the facility which will also allow Ades to buy more rigs to operate in the Kingdom
. () has established a US$140mln line of credit to finance the acquisition of three jack-up oil drilling rigs from Nabors.
The company is already one of the largest oil and gas drill contractors in the Middle East and Africa with a fleet of jack-up offshore drilling rigs, onshore drilling rigs, a jack-up barge, and a mobile offshore production unit.
Dr Mohamed Farouk, chief executive, said: “ADES is participating in multiple tenders and screening acquisitions across Saudi Arabia and the wider GCC region, and this KSA Facility further strengthens our purchasing power, providing us with greater flexibility to consider and act swiftly on value-accretive acquisitions.”
ADES announced the US$83mln purchase from Nabors in December.
Alinma Bank, a Saudi-based financial institution, is providing the facility, which will allow Ades to buy more rigs to operate in the Kingdom.
The credit line is in addition to a US$450mln facility arranged by Merrill Lynch and the European Bank for Reconstruction and Development.
Repayment of the principal amount will begin 24 months from signing with a fixed repayment rate of 11.1%, payable semi-annually.