Proceeds are expected to be received in tranches with US$40 million received upon sale of the contracted rigs and US$10 million for each of the rigs to be relocated, subject to other customary adjustments agreed in connection with finalising the overall transaction.
In July 2018, a subsidiary of Weatherford signed definitive agreements with ADES International Holding PLC 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 US$287.5 million (the ‘Transaction’). The Transaction includes 31 land drilling rigs and related drilling contracts, as well as approximately 2300 employees and contract personnel.
This is the third in a series of four closings subject to regulatory approvals, consents and other customary closing conditions. In December 2018, the Company announced the closing of its Precision Drilling Services Saudi Arabia land drilling operations for US$92.5 million in cash. In November 2018, the Company announced the closing of its Kuwait land drilling rigs sale for US$123 million in cash, and an additional US$12 million to be received in equal US$6 million increments upon the delivery of two idle land drilling rigs from Iraq. Weatherford intends to use the proceeds to reduce its debt.
