Saudi Gazette report
RIYADH — The Public Investment Fund (PIF) has signed a share subscription agreement to invest in Alkhorayef Petroleum, a leading provider and manufacturer of oil and gas production optimization solutions in Saudi Arabia.
The investment comprises a 25% shareholding through a capital increase and subscription to new shares, with Alkhorayef Group retaining a 75% stake.
This move aligns with PIF's broader strategy to enhance Saudi Arabia's equipment and service landscape, fostering the growth of promising private sector companies and contributing to the development of the industrial ecosystem, ultimately increasing export revenues.
Alkhorayef Petroleum specializes in artificial lift, wireline services and equipment, and early production facilities, serving as the only Gulf-based manufacturer of electric submersible pumps crucial to oil and gas production.
With a diversified revenue base and operational success in 13 countries, the company is poised for further growth.
PIF's investment aims to position Alkhorayef Petroleum for optimal growth, leveraging its technical and commercial capabilities while enhancing its presence in the energy services industry.
The agreement is expected to improve supply chains in the energy services sector within 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, supporting the realization of Vision 2030.
Saad Alkhorayef, chairman of Alkhorayef Petroleum and Alkhorayef Group, expressed that the investment is a recognition of their achievements in the Middle East, Africa, and Latin America.
He sees it as a major milestone that will strengthen the company's position as a leading oilfield services provider globally, reinforcing their ambition and determination.
The completion of the agreement is subject to customary approvals from relevant authorities and satisfaction of certain conditions in the transaction agreements.
