Dammam, Kingdom of Saudi Arabia – 20 December 2020:
The Industrialization and Energy Services Company (“TAQA”) today announced that it has signed an agreement to sell its 72% stake in Jubail Energy Services Company (“JESCO”) to ArcelorMittal Tubular Products Jubail (“AMTPJ”). This transaction is part of AMPTJ’s proposed acquisition of 100% of JESCO. Headquartered in Jubail, JESCO is a pioneer of the Middle Eastern seamless tubes manufacturing industry, established as part of the strategic industrialization path set by the Kingdom of Saudi Arabia. Khalid Nouh, TAQA’s Chief Executive Officer and JESCO’s Chairman of the Board said, “TAQA’s proposed sale of its stake in JESCO represents another significant step in delivering on TAQA’s corporate strategy, fully aligned with the Kingdom’s ambitions and objectives of creating a stronger local steel industry and manufacturing powerhouse in the Kingdom of Saudi Arabia. Looking ahead, TAQA will continue to focus its efforts on expanding into technology-driven oil field services and equipment.” This transaction will create a national champion with a regional leadership position, which will supply best-in-class products to the Saudi market with strong export capabilities regionally and worldwide through ArcelorMittal’s international footprint and scale. The completion of the transaction is subject to certain closing conditions. TAQA was assisted on this transaction by Lazard as financial advisor and Herbert Smith Freehills as legal counsel.
– Ends –
Founded in 2003, TAQA seeks to become the region’s own Oil Field Services and Equipment (“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 2030 Vision, 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.
Founded in 2006, JESCO is a pioneer in the Middle East production of Seamless Tubes, established in Saudi Arabia as part of the strategic industrialization path set by the Kingdom. The company is part of a critical strategic industry supplying the O&G sector and started its commercial operation in 2010 to offer a local solution to National Oil Companies in the GCC and exports. The company operates a manufacturing plant located in Jubail capable of producing 400,000 tons per year of Seamless Tubes in three main product segments: OCTG, Line Pipe and Structural Tubes.
Director – Corporate & Marketing Communications