The Industrialization and Energy Services Company (TAQA) has announced the completion of the sale of its stake in Jubail Energy Services Company (JESCO) to ArcelorMittal Tubular Products Jubail (AMTPJ), which has bought the remaining shares and now owns 100 percent of JESCO.
TAQA’s chairman of the board, Ahmed Al-Zahrani, said: “The divestiture of JESCO is in line with TAQA’s 2021 strategy to become a major player in Vision 2030 realization by maximizing the value of local investment and creating a more diverse and sustainable economy. The transaction will result in a much stronger industry in the steel sector serving not only the Kingdom but also the rest of the world.”
Khalid Nouh, TAQA’s chief executive, said: “Expanding our oilfield services and equipment (OFSE) portfolio is at the core of what we want to achieve. The divestiture of non-core businesses such as JESCO allows TAQA to expand its portfolio through acquisitions of additional services and technologies, complementing our current offering, and creating more value to customers and shareholders, as well as offering more job opportunities for the ambitious young generation in Saudi Arabia.”
TAQA continues to expand its oilfield service offerings to Saudi Aramco and other customers in the MENA region. Starting with the acquisition of Sanjel Energy Services in 2017, followed by Cougar Drilling Solutions in 2019 and AZR Technologies in 2020, TAQA continues to build its capabilities focused on becoming a trusted partner to all oil and gas companies in the MENA region.
Founded in 2003, TAQA seeks to become the region’s own OFSE leader, delivering key well services from drilling through to completion, by increasing capacity, building capabilities and expanding into higher tier services. As a key supporter of the Kingdom’s Vision 2030, TAQA is a catalyst for economic growth and diversification, expanding Saudi Arabia’s industrial base and local manufacturing capabilities, creating jobs and facilitating the growth and development of a pool of local talent in the OFSE sector.
Meanwhile, JESCO was established in Saudi Arabia in 2006 as part of the strategic industrialization path set by the Kingdom. The company operates a manufacturing plant in Jubail, which can produce up to 400,000 tons of seamless tubes per year in three main product segments: OCTG, line pipe and structural tubes.