Consortium set to buy UAE oil services company

NPS1NPS Energy had put itself up for sale after a deal to be bought by Norway’s Aker Solutions fell apart in 2012. (Image source: NPS)A consortium owned by Fajr Capital, APICORP and Zamil Group are in talks to buy UAE-based oil services firm NPS Energy for around US$700mn

A source, on condition of anonymity, said, “A regional consortium makes a lot of sense for NPS as the asset is pretty large for a single local buyer and looks like internationals are not too keen.”

NPS Energy had put itself up for sale after a deal to be bought by Norway’s Aker Solutions fell apart in 2012, Reuters reported.

NPS Energy is part of oilfield services company National Petroleum Services, which was formed in 2004 from the merger of oilfield businesses owned by two large family-owned groups in Saudi Arabia and Qatar.

HSBC Holdings is running the sale process for NPS, the company said.

Demand for oilfield services in the Middle East has risen in the last few years, according to reports.

Fajr Capital has state entities such as Khazanah Nasional, Abu Dhabi Investment Council and the government of Brunei among its shareholders.

APICORP has been reportedly scouting for acquisitions in the oil and commodities space and had bought an additional 10 per cent stake in Egyptian methanol producer EMethanex from one of its joint venture partner last month.

Khobar-based Zamil Group businesses range from manufacturing air conditioners to steel fabrication.

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