Weatherford completes sale of Kuwait land drilling rigs

BAAR, Switzerland -- Weatherford International has completed the sale of its land drilling operations in Kuwait, including 12 drilling rigs to ADES International Holding for $123 million in cash, and an additional $12 million in cash pending the delivery of two idle land drilling rigs in southern Iraq.

In July 2018, a subsidiary of Weatherford signed a definitive agreement with ADES International Holding for the sale of Weatherford’s land drilling rig operations in Algeria, Kuwait and Saudi Arabia as well as two idle land rigs in Iraq, for an aggregate cash purchase price of $287.5 million. The transaction includes 31 land drilling rigs and related drilling contracts, as well as approximately 2,300 employees and contract personnel.

This is the first in a series of four closings, the majority of which are expected to be completed by year-end 2018, subject to regulatory approvals, consents and other customary closing conditions. The purchase price is also subject to a customary post-closing working capital adjustment. Weatherford will use the proceeds to reduce its debt.