Aberdeen-based KCA Deutag has purchased Dalma Energy's Omani and Saudi Arabian assets for £478 million.

The deal will see the businesses combine to form an enlarged Group while also giving KCA Deutag access to the Saudi Arabian onshore drilling services market.

In addition, the business will continue to operate under the KCA Deutag brand name and will have approximately 9,700 employees.

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Norrie McKay, Chief Executive Officer 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."

In 2017, KCAD recorded revenue of £839m. The Dalma Business it has taken over had revenue of £226m.

(LM)