North-east drilling company gets approval to acquire new firm in £477 million deal

A drilling company based in the North-east is set to combine with another firm in a £477 million deal.

KCA Deutag (KCAD) based in Portlethen has agreed to join with Dalma to form a drilling and engineering group.

Shareholders at Dalma Energy have agreed to the acquisition by KCAD of its Omani and Saudi Arabian businesses.

Norrie McKay, CEO of KCAD, said: “The acquisition of Dalma’s operations in Saudi Arabia and Oman will significantly strengthen our foothold in the Middle East, and provide us with a stronger platform to develop and grow our business in what is an exceptionally attractive region.

“Dalma’s operations are an excellent strategic fit, not only consolidating our position in Oman as the country’s leading owner and operator of onshore drilling rigs but also enabling us to offer our operational expertise in the substantial Saudi Arabian onshore drilling market, which has been a key target for KCAD.”