TAQA sells Saudi JESCO stake to ArcelorMittal Jubail

RIYADH: The Industrialization and Energy Services Company (TAQA) on Sunday said it had signed an agreement to sell its 72 percent stake in Jubail Energy Services Company (JESCO) to ArcelorMittal Tubular Products Jubail.

The deal is part of ArcelorMittal Tubular Products Jubail’s plan to acquire 100 percent of JESCO.

TAQA is fully owned by the Public Investment Fund and a number of major Saudi joint-stock companies and founding investors.

JESCO, which is headquartered in Jubail, is a leader in the Middle East’s seamless pipes manufacturing industry and was established as part of Saudi Arabia’s strategic industrialization path.

Its Jubail factory has an annual production capacity of 400,000 tons of seamless steel pipes in three major product sectors: Pipe products for oil companies, pipelines and structured pipes.

Khalid Nouh, TAQA’s chief executive officer and JESCO’s chairman of the board, said: “TAQA’s proposed sale of its stake in JESCO represents another significant step in delivering on TAQA’s corporate strategy, fully aligned with the Kingdom’s ambitions and objectives of creating a stronger local steel industry and manufacturing powerhouse. Looking ahead, TAQA will continue to focus its efforts on expanding into technology-driven oil field services and equipment.”

TAQA, which was founded in 2003, specializes in oilfield services and equipment in the region. It provides key services for the delivery of wells from drilling to completion through increased capacity, capacity building and expansion of higher-level services.