Enersol Secures $223 Million Acquisition Of Deep Well Services To Enhance Energy Operations

ADNOC Drilling Company PJSC and Alpha Dhabi Holding PJSC have announced that their joint venture, Enersol, will acquire a 95% stake in Deep Well Services (DWS) for around $223 million. This deal includes performance-based payments and awaits regulatory approvals and other standard conditions before completion.

DWS, founded in the United States in 2008, is known for its advanced technologies in the energy sector. The company specialises in Hydraulic Completion Units (HCU) designed for high-pressure and multi-well operations. These units are supported by BoreSite, a data analytics software, and globally accredited training programs that improve safety and efficiency.

Through this acquisition, Enersol aims to enhance its technology portfolio and explore growth opportunities in untapped markets. DWS's strong operational and financial profile aligns with Enersol’s strategy to invest in scalable businesses that optimise operational efficiencies and market value.

DWS has also formed AutoSep Technologies, a joint venture focusing on automating flowback operations. Its services are utilised by over 70 exploration and production companies across North America, ranging from small operators to large national energy firms.

In 2023, DWS reported impressive financial results with revenue exceeding $205 million. The company maintained a robust EBITDA margin and is projected to generate free cash flow of over 10%. This performance supports Enersol’s acquisition strategy aimed at building a diverse portfolio.

Enersol's acquisition of DWS marks its fourth such move. Previous acquisitions include EV, a downhole visual analytics firm; a 51% stake in NTS Amega, an advanced precision equipment manufacturer; and a 67% stake in Gordon Technologies, which provides measurement while drilling services.

Contribution to UAE Energy Development

DWS will contribute to the development of the UAE’s conventional and unconventional energy resources through Enersol. The joint venture will support ADNOC Drilling’s recent $1.7 billion contract to deliver 144 unconventional wells to ADNOC Group by utilising various available technologies.

The acquisition of DWS is expected to bolster Enersol’s next-generation technology offerings. This strategic move provides additional growth avenues across new markets while offering long-term potential benefits.

With inputs from WAM