PIF Invests in Alkhorayef Petroleum, Driving Saudi Energy Services Growth
The Public Investment Fund (PIF) has officially inked a share subscription agreement to invest in Alkhorayef Petroleum.
Alkhorayef Petroleum is renowned for its role as a leading provider and manufacturer of cutting-edge solutions in the oil and gas production optimization domain within the Kingdom.
As part of the agreement, PIF will acquire a 25% stake through a capital increase and subscription to new shares, while Alkhorayef Group will maintain a 75% ownership interest.
This strategic investment aligns seamlessly with PIF's overarching strategy to elevate Saudi Arabia's equipment and service landscape.
The goal is to stimulate the growth of promising private sector entities, thus contributing significantly to the advancement of the industrial ecosystem and, in turn, boosting export revenues.
Alkhorayef Petroleum specializes in a range of services, including artificial lift, wireline services and equipment, and early production facilities.
Notably, the company holds the distinction of being the sole Gulf-based manufacturer of electric submersible pumps crucial to oil and gas production.
With an already diversified revenue base and a track record of operational success spanning 13 countries, Alkhorayef Petroleum is poised for further expansion.
PIF's strategic investment is intended to position the company for optimal growth, leveraging its technical and commercial capabilities while strengthening its foothold in the energy services industry.
This landmark agreement is anticipated to have a positive impact on the supply chains within the energy services sector in Saudi Arabia.
Muhammad Aldawood, Head of Industrials and Mining sector in MENA Investments at PIF, emphasized that this investment aligns with PIF's domestic strategy to develop key sectors and collaborate with strategic economic partners in the private sector, contributing to the realization of Vision 2030.
Saad Alkhorayef, Chairman of Alkhorayef Petroleum and Alkhorayef Group, hailed the investment as a recognition of their achievements in the Middle East, Africa, and Latin America.
He views this strategic move as a major milestone that will fortify the company's standing as a leading global oilfield services provider, reinforcing their ambition and determination.
The completion of this groundbreaking agreement is contingent upon customary approvals from relevant authorities and the satisfaction of specific conditions outlined in the transaction agreements.
Source: Saudi Gazette