Saudi’s PIF to invest in Alkhorayef Petroleum for 25% stake

The Public Investment Fund (PIF) has announced its investment in Alkhorayef Petroleum, from the Alkhorayef Group, through a share subscription agreement for a 25% shareholding. The remaining 75% stake will be retained by Alkhorayef Group, the parent company.

Strategic Goals of the Investment

This investment by PIF is part of a broader initiative to enhance Saudi Arabia’s equipment and service landscape in the oil and gas industry. Alkhorayef Petroleum is a leading provider and manufacturer in the sector, known for its specialization in artificial lift, wireline services, and early production facilities. The investment aims to support private sector companies’ growth and develop the industrial ecosystem in line with Saudi Arabia’s Vision 2030.

Alkhorayef Petroleum’s Industry Impact

As the only Gulf-based manufacturer of electric submersible pumps, Alkhorayef Petroleum has established a diversified revenue base and operational success in over 13 countries across the Gulf Cooperation Council, Africa, and Latin America. The company’s expertise in oil and gas production optimization positions it as a key player in the industry.

Saudi’s Public Investment Fund to acquire 25% stake in Alkhorayef Petroleum

Benefits and Future Growth

The investment by PIF will empower Alkhorayef Petroleum to enhance its technical and commercial capabilities, strengthen its position in the energy services industry, and create long-term value for shareholders. It is expected to improve supply chains in the energy sector and foster innovation and R&D, contributing to the company’s growth strategy in local and international markets.

Stakeholders’ Perspectives

Muhammad Aldawood, Head of Industrials and Mining sector in MENA Investments at PIF, emphasized the investment’s alignment with PIF’s strategy to develop key sectors and support Vision 2030’s goals. Saad Alkhorayef, Chairman of Alkhorayef Petroleum and Alkhorayef Group, expressed confidence that this investment marks a significant milestone in the company’s journey, enhancing its global presence in the oilfield services industry.

Conclusion

The agreement between PIF and Alkhorayef Petroleum, pending customary approvals, signifies a major development in Saudi Arabia’s manufacturing and oilfield services sectors. This strategic partnership is set to propel Alkhorayef Petroleum towards becoming a leading global oilfield services company.