UAE-based investment holding firm Alpha Dhabi Holding has acquired a 51% stake in NTS Amega Global, known for manufacturing, repair, and rental solutions in the oil and gas sector, for an undisclosed amount.
The acquisition underscores the Abu Dhabi-listed conglomerate’s firm commitment to enhancing its energy portfolio, especially in the oil and gas sector, Alpha Dubai said in a statement Wednesday.
Alpha Dhabi added that the acquisition strengthens its position as a global player in the production of drilling, subsea, top-side and process components, repair of measuring and logging while drilling tools and the rental of specialized bottom hole assembly drilling equipment.
According to Alpha Dhabi, the acquisition will support NTS’s innovative contracting options, including global framework agreements, local repair/manufacture hubs, and stock management programs.
All these are designed to lower costs, improve lead times, and increase equipment availability, while maintaining the highest levels of quality and service.
Alpha Dhabi reported a 30% year-on-year rise in its net profit of $2.8 billion (AED 10.3 billion) in the first half of 2023, driven by higher revenues.
Last month, the company announced its plan to buy a majority stake in water and wastewater project developer Metito Holdings without specifying the stake size.
“By investing in companies that align seamlessly with our oil field services operations, we remain true to the core principles of our growth strategy,” Eng. Hamad Salem Al Ameri, CEO and MD of Alpha Dhabi Holding, said in the statement.
“Our collaboration with industry leaders like NTS Group is a strategic move to not only accelerate our growth but also to expand and diversify our presence across various markets and regions.”
The oilfield services market is expected to achieve a compounded annual growth rate (CAGR) of 5.5% between 2022 and 2027. The global oilfield services market size is projected to reach $346.5 billion by 2027, Alha Dhaba said, citing a recent study.
UAE-headquartered NTS group has operations in Saudi Arabia, Houston-Texas, Canada, Huyana, Norway, Singapore, Midland and Lafayette.
In fact, NTS Group was acquired by a joint venture between TUBACEX, a leader in advanced materials and solutions for a sustainable future, and ADQ in 2019.
The following year, NTS Group further solidified its global presence by acquiring Amega West Services from Carpenter Technology Corporation.
