By OGJ editors
HOUSTON, Apr. 9 -- Parker Drilling Co. plans to sell its 50% interest in a Saudi Arabian joint venture, Al-Rushaid Parker Drilling Co. Ltd. (ARPD), to an affiliate of Al-Rushaid Investment Co., the Saudi firm owning the other 50% stake.
Al-Rushaid Investment's affiliate is Abdullah Rasheed Al-Rushaid Co. for Drilling Oil & Gas Ltd. (OGJ, Mar. 3, 2006, Newsletter). Subject to finalization of financing details and approval by the Saudi Arabian government, closing is expected on or before Apr. 14.
The divestiture will result in aggregate payments of $2 million to Parker. The Houston-based drilling contractor expects to report a $1.5 million net loss from the joint venture.
Parker Drilling Chairman and Chief Executive Officer Robert L. Parker Jr. said his company decided to sell its joint venture stake because it "was not the best organizational structure for applying our project management expertise and disciplined processes."
The company believes the North Africa and Middle East market hold long-term growth potential and plans to continue offer drilling services in this region, he said.