Aberdeen corporate finance advisers have brokered what is believed to be the largest Middle East oilfield service mergers and acquisitions deal in history.
The transaction – worth about £300million – saw National Petroleum Services (NPS) snapped up by a consortium led by sovereign-backed investment firm Fajr Capital.
Simmons and Company International, corporate adviser to the energy industry, told the Press and Journal yesterday its Aberdeen and Dubai offices advised Fajr and the other investors.
One of the partners in the investment consortium – Abu Dhabi company Waha Capital – said the deal gave it a 20.56% stake in NPS, which was founded in 2004 in Qatar and has its head office in Dubai.
NPS delivers drilling, customised well services and support to oil and gas industry clients including Saudi Aramco, Qatar Petroleum, Mearsk, Shell, Total, ConocoPhillips and Occidental.
It operates through 20 subsidiaries and branches employing 1,300 people in locations including Saudi Arabia, UAE, Qatar, Iraq, Malaysia and north Africa.
The involvement of Houston-based Simmons further strengthens its growing reputation in the Middle East.
Simmons’ previous business in the region includes advising the sale of Lamprell subsidiary Inspec to Intertek, the disposal of Al Mansoori’s Thailand business and the transfer of Clough’s marine construction business to Sapura.
Nick Dalgarno, Aberdeen-based co-head of eastern hemisphere business for the company, led the team which advised Fajr and fellow investors on their acquisition.
“The Middle East is becoming an increasingly important region for international oilfield services businesses, and the expertise of our Aberdeen and Houston teams combined with our presence in Dubai make a compelling proposition for companies in the sector looking to buy, sell or secure investment,” Dalgrano said.
“Regular visits and involvement from the Aberdeen team brings a wider European perspective and insight to our local presence which – when combined with our US network and market knowledge – is of real added value to industry in the Middle East.
“I am now spending at least one week every month in the region.”
Simmons opened its Aberdeen office – the firm’s first outside Houston – in 1999. An office in London followed four years later, with Dubai following in 2008.
The group’s UK-based eastern hemisphere operations have advised on deals worth more than £8.8billion since 1999.
They employ more than 30 corporate finance advisors and industry professionals, as well as about 50 office staff.
In its announcement of the NPS deal, Waha said it was the first transaction involving its new energy-focused investment unit.
“NPS is a well-established company, with a strong regional management team,” said Waha chief executive Salem Al Noaimi.
“We are excited to support the company in continuing to expand its service offering and geographic reach.”
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