Drilling and engineering contractor KCA Deutag has been acquired by US driller Helmerich & Payne (H&P) for around $1.972bn. The deal will increase H&P’s Middle East rig count to 88 from 12, making the combined company one of the largest rig providers in the region. The transaction, which will be funded with cash on hand and new borrowings, is expected to close before the end of the year. Aberdeen-based KCA Deutag has a significant land drilling presence in the Middle East, which represents about two-thirds of the company’s 2023 operating EBITDA. In 2022, the company bought Saipem’s onshore drilling business for $550m and a 10% shareholding. In addition to its land operations, the company manages 29 offshore rigs in the North Sea, Angola, Azerbaijan and Canada and has a manufacturing and engineering business with three facilities serving the energy sector. Upon closing the transaction, H&P should have three primary operating segments: North America Solutions, International Solutions, and Offshore Solutions. In related drilling news, offshore rig owner Noble last month agreed to buy Diamond Offshore Drilling in a cash-and-stock deal valued at $1.59bn. googletag.cmd.push(function() { googletag.display('div-gpt-ad-1_95_0_1_2'); }); TagsUnited Kingdom United States