KARACHI: Schlumberger Ltd, a Texas-based drilling company, will remain in Pakistan despite its onshore drilling rigs business acquired by Arabian Drilling Company (ADC), a subsidiary of Saudi Arabia’s Industrialization and Energy Services Company (TAQA), for $415 million (SAR 1.56 billion), officials confirm.
TAQA on Sunday announced that its drilling subsidiary, ADC, has agreed to acquire Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan as part of its planned $1.2 billion acquisitions of drilling rig ventures.
“It has been reported that it is a simple merger but Schlumberger will remain in Pakistan”, Sher Afghan Khan, Spokesman of Pakistan’s Petroleum Division, told Arab News.
Through this expansion, ADC will become an industry powerhouse, operating a superior fleet of 58 onshore rigs and 9 offshore rigs across the Middle East and North Africa (MENA) region. The combined firm will have more than 5,900 employees and builds on ADC’s long-standing reputation of reliably serving national and international oil and gas companies for over 55 years, statement posted on TAQA official website says.
The transaction will combine the outstanding track records of the parties with respect to operations, quality of service, health, safety and environment. It will also create economies of scale and cost synergies, making ADC a regional leader, encompassing a diversified, multi-country and multi-client offering.
“This acquisition is fully aligned with Saudi Vision 2030. It unlocks value and drives growth across our entire value chain through a more integrated regional approach, while positioning a leading Saudi company as a global player,” TAQA chief executive officer Azzam Shalabi, who is also chairman of the ADC Board was quoted as saying in an interview at Dammam, Saudi Arabia.
Taqa plans to use about $800 million of its own funds for the planned acquisitions and may seek loans or sell bonds or sukuk for the rest, Shalabi said. It may consider an initial public offering in 2021, according to the website post.
As the transaction is expected to close in the second half of 2019, subject to regulatory approvals, the officials hope that it will benefit all stakeholders. “We look forward to supporting ADC in the next phase of its expansion and have full confidence that this will benefit all stakeholders, most notably our regional clients,” Shalabi added.
Schlumberger, provides technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. reported revenues of $32.82 billion in 2018. The company reported $2,338 million revenue generation from Middle East & Asia region during January- March 2019, which is two percent higher as compared to the same period last year.
Schlumberger to remain in Pakistan despite merger with Saudi TAQA: Petroleum Ministry
Schlumberger to remain in Pakistan despite merger with Saudi TAQA: Petroleum Ministry
- A $1.2 bn deal will add company's onshore oil-rig business in Kuwait, Oman, Iraq and Pakistan to Arabian Drilling’s Saudi operations
- Taqa agreed on Sunday to pay around $415 million for Texas-based Schlumberger Ltd.’s Middle East drilling-rig business
US imposes more sanctions over Pakistan’s missile program
- The measures target ‘proliferators of weapons of mass destruction and their means of delivery,’ State Department says
- The sanctions freeze any US property belonging to the targeted entities and bars Americans from doing business with them
WASHINGTON: The United States said on Wednesday it was imposing new sanctions related to nuclear-armed Pakistan’s long-range ballistic-missile program, including on the state-owned defense agency that oversees the program.
State Department spokesperson Matthew Miller said in a statement that the measures slapped on the National Development Complex and three firms were imposed under an executive order that “targets proliferators of weapons of mass destruction and their means of delivery.”
The sanctions freeze any US property belonging to the targeted entities and bars Americans from doing business with them.
Pakistan’s foreign ministry said in a statement that the US action was “unfortunate and biased” and would harm regional stability by “aiming to accentuate military asymmetries,” an apparent reference to the country’s rivalry with nuclear-armed India.
A State Department factsheet said the Islamabad-based NDC has sought to obtain components for the country’s long-range ballistic-missile program and missile-testing equipment.
It said the NDC “is responsible for the development of Pakistan’s ballistic missiles,” including the Shaheen family of missiles.
The Bulletin of the Atomic Scientists research organization says the Shaheen series of missiles is nuclear-capable.
Pakistan conducted its first nuclear-weapons test in 1998, becoming the seventh country to do so. The Bulletin estimates Pakistan’s arsenal at about 170 warheads.
Islamabad has refused to sign the Non-Proliferation Treaty, the cornerstone of the international system designed to prevent the spread of nuclear weapons.
The other entities slapped with sanctions were Affiliates International, Akhtar and Sons Private Limited and Rockside Enterprise, all located in Karachi, the factsheet said.
It said the companies worked with the NDC to acquire equipment.
“The United States will continue to act against proliferation and associated procurement activities of concern,” Miller said.
Pakistan completes survey of special economic zones to attract Chinese industries, foreign investment
- The survey included aerial assessments to identify resources and challenges of SEZs across the country
- The government plans to adopt environmentally sustainable practices to run these industrial zones
ISLAMABAD: Pakistan has completed a survey of Special Economic Zones (SEZs) as part of efforts to facilitate the relocation of Chinese firms and make these zones suitable for international businesses, Federal Minister for Investment Abdul Aleem Khan said on Wednesday.
The government aims to attract foreign investment from friendly nations, including China and Gulf countries, and established the Special Investment Facilitation Council (SIFC), a hybrid civil-military body, last year to eliminate bureaucratic hurdles and provide a one-window operation for foreign businesses.
The survey, which included aerial assessments using drone technology, identified the resources and challenges of SEZs across the country.
“These zones will incorporate special measures to facilitate the relocation of Chinese industries,” the investment minister was quoted as saying in an official statement, though he added the country would also welcome investments from other countries.
Officials in Islamabad and Beijing launched the multibillion-dollar China-Pakistan Economic Corridor (CPEC), which initially focused on energy and infrastructure projects but now plans to transition into the next phase with an aim to boost industrial production and exports.
Earlier this year, Prime Minister Shehbaz Sharif undertook a five-day visit to China, where he met representatives of leading Chinese businesses and urged them to invest in Pakistan and relocate their operations to SEZs.
The development came as Pakistan recovers from a prolonged economic crisis with external financing, while the government acknowledges the need to enhance industrial and agricultural output and exports through increased international investment.
Khan directed Pakistani embassies to engage foreign investors actively and asked relevant officials to establish a “Pride of Pakistan” group for key international stakeholders.
He said the government aimed to introduce about 150 reforms to enhance SEZ operations and improve their overall efficiency.
The steps would include environmentally sustainable practices under the “Green Pakistan Investment” model, focusing on eco-friendly infrastructure, renewable energy and sustainability measures to attract global investors.
Specific zones, such as Karachi’s industrial hub, will be linked to Port Qasim with enhanced infrastructure and facilities.
The minister and other officials also discussed the construction of a business facilitation center in a meeting and reviewed the “Ease of Doing Business Act 2024,” which aims to streamline investment processes further.
Pakistan pledges to sustain economic gains after inflation hits six-year low
- Finance minister says economic progress made so far will serve as foundation for future successes
- Consumer Price Index in Pakistan fell to 4.9 percent this month, marking its lowest level since Apr. 2018
ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb on Wednesday vowed to maintain the country’s economic momentum after the Consumer Price Index (CPI) fell to 4.9 percent earlier this month, marking the lowest inflation rate since April 2018.
The pledge comes as Pakistan navigates a recovery from years of severe economic challenges, including soaring inflation, dwindling foreign exchange reserves, currency depreciation and a persistent fiscal deficit.
In recent months, however, the country has witnessed a steady improvement in macroeconomic indicators, taking measures to restore investor confidence, as it undertakes structural reforms under a $7 billion International Monetary Fund (IMF) program.
“The Finance Minister expressed optimism that the progress made so far would serve as a foundation for future successes, as the government remains dedicated to building a prosperous and stable Pakistan,” the finance ministry said in a statement released after the Economic Coordination Committee’s (ECC) meeting.
The meeting evaluated on the overall economic situation of the country and particularly mentioned the improvement in CPI.
“The current CPI figure marks the lowest in the past 78 months, signaling a positive shift in the country’s inflationary trends,” the statement added. “The decline in CPI reflects the government’s success in managing inflationary pressures and restoring price stability, particularly for essential commodities.”
Aurangzeb assured the public the government would continue its efforts to support economic stability and strengthen key sectors, including agriculture, manufacturing and infrastructure.
The ECC also discussed plans to pursue economic diversification and ensure better living standards for Pakistan’s population.
Saudi Arabia wants stronger parliamentary, economic ties with Pakistan, offers tech support
- Saudi Shura Council chairman meets Pakistani parliamentary leaders during his three-day visit
- Speaker Ayaz Sadiq calls for closer bilateral cooperation amid changing global environment
ISLAMABAD: Saudi Arabia seeks to strengthen parliamentary and economic ties with Pakistan and is keen to assist the National Assembly in the field of technology, the Kingdom’s Shura Council Chairman Dr. Abdullah bin Mohammed bin Ibrahim Al Sheikh said on Wednesday during his visit to Pakistan.
Dr. Al Sheikh is on a three-day visit to Pakistan, during which he has met with Prime Minister Shehbaz Sharif, who described relations with the Kingdom as a “vital pillar” of Pakistan’s foreign policy.
Both countries are longtime allies, with Islamabad seeking closer economic, defense and security ties with the Kingdom, which hosts approximately 2.5 million Pakistani expatriates and remains the largest source of remittances for the cash-strapped South Asian nation.
“Saudi Arabia aspires for a prosperous and developed Pakistan,” the Saudi official said according to an official statement circulated in Islamabad, following high-level meetings with Pakistan’s parliamentary leadership, including National Assembly Speaker Sardar Ayaz Sadiq and Senate Chairman Syed Yusuf Raza Gilani.
During his meeting with Speaker Sadiq, both officials emphasized the importance of enhancing bilateral parliamentary and economic relations.
Al Sheikh expressed gratitude for the warm reception and reiterated the shared cultural, historical and religious ties between the two nations.
“The rapidly changing global environment demands closer bilateral cooperation,” Sadiq said, highlighting the significance of parliamentary exchanges and joint initiatives to further mutual interests.
Separately, the Saudi official met with Senate Chairman Gilani, where discussions focused on broadening institutional cooperation. Gilani lauded Saudi Arabia’s support for Pakistan and emphasized the importance of leveraging shared opportunities in trade, investment and defense.
“Saudi Arabia’s parliamentary delegation visit will mark a new milestone in our bilateral ties,” Gilani said, adding that both countries have always supported each other in times of need.
Al Sheikh reaffirmed the Kingdom’s commitment to Pakistan, emphasizing the longstanding friendship between the two nations.
“Saudi Arabia and Pakistan share a deep bond of respect and mutual trust, which serves as the foundation for our robust partnership,” he said.
Gilani noted that strengthening economic collaboration and exploring investment opportunities were key to deepening ties further, while encouraging Saudi investors to actively explore ventures in Pakistan.
The meetings also covered joint efforts to promote unity among the Muslim Ummah and to enhance cooperation on global forums.
South Africa call up two uncapped fast bowlers for Pakistan Test series
- South Africa will be in next year’s World Test Championship final if they win one Test against Pakistan
- The Proteas are faced with serious depletion of bowling resources, with several injured players
JOHANNESBURG: South Africa named two uncapped fast bowlers in a 16-man squad for a two-match Test series against Pakistan starting in Centurion on December 26.
With an entire battery of fast bowlers unavailable, left-armer Kwena Maphaka and Corbin Bosch were added to the team that beat Sri Lanka in Gqeberha this month.
Maphaka is an 18-year-old prodigy who has already been capped at Twenty20 international level while Bosch, the 30-year-old son of former Test fast bowler Tertius, has yet to play for the senior national team.
South Africa included all-rounder Wiaan Mulder and left-arm spin bowler Keshav Maharaj in the squad, but both selections are subject to fitness.
Mulder suffered a broken right middle finger in the first Test against Sri Lanka while Maharaj suffered what Cricket South Africa described as “an acute groin strain” while warming up for the first one-day international against Pakistan in Paarl on Tuesday.
Maharaj was due to have a scan on Wednesday to assess the severity of the injury.
Bosch, who has a first-class batting average above 40, could come into contention if Muller is unfit, while Senuran Muthusamy, also a left-armer, is the only other spin bowler in the squad if Maharaj is ruled out.
South Africa will be assured of a place in next year’s World Test Championship final if they win at least one Test against Pakistan — but their bowling resources have been seriously depleted.
Fast bowlers Anrich Nortje, Nandre Burger, Gerald Coetzee and Lizaad Williams have all been sidelined. It will be a blow if Maharaj, South Africa’s premier spin bowler, cannot play.
“We head into this series with a clear focus, with a spot in the World Test Championship final being the pot of gold at the end of the rainbow,” South African coach Shukri Conrad said in a CSA statement.
Squad: Temba Bavuma (capt), David Bedingham, Corbin Bosch, Matthew Breetzke, Tony de Zorzi, Marco Jansen, Keshav Maharaj, Kwena Maphaka, Aiden Markram, Wiaan Mulder, Senuran Muthusamy, Dane Paterson, Kagiso Rabada, Ryan Rickelton, Tristan Stubbs and Kyle Verreynne (wkt).
Fixtures:
December 26-30, Centurion
January 3-7, Cape Town
