On behalf of a leading financial institution, Westwood was commissioned to provide a commercial due diligence study on a Middle Eastern rig company.
Project Brief
Westwood was commissioned by a leading investment bank to provide a detailed commercial due diligence report on a Middle Eastern land rig company. Our scope of work included:
- Long-term oil and gas market outlook to include the role of the Middle East, while reviewing regional production decisions and targets to assess the impact of the target company’s operations.
- Detailed competitive landscape including Middle East drilling contractors and their fleet’s technical specifications, such as size and horsepower rating.
- Middle East customer landscape on a country level to identify average contracting duration, preferred technical specifications and other regulatory factors such as local content requirement.
- Land drilling market outlook based on forecast onshore wells split by Middle East countries and demand broken out by rig horsepower rating categories.
- Discounted cash flow valuation of the target company’s onshore fleet with key inputs such as utilisation, dayrates and operational costs.
Consulting Sectors: Onshore Energy Services Consulting, International Land Rigs Consulting
Westwood Approach
Westwood’s Global Land Rigs market intelligence platform offers unrivalled and real-time data on the global onshore rig fleet.
Key metrics such as fleet size by drilling contractor, horsepower rating and other technical specifications from Global Land Rigs enabled a highly robust competitive landscape, whilst also providing overall market utilisation and dayrates on a regional level and by key Middle East countries.
Project Outcome
The Client was very satisfied with the level of detail and analysis provided within the due diligence report – which covered key points that effectively addressed the concerns of potential buyers of the target company.
Westwood Consulting Project Team
For every energy consultancy mandate that Westwood delivers, we define key roles to ensure the smooth management and delivery of each project.
Thom Payne
Thom’s strong experience in commercial advisory ensured that the due diligence report addressed key questions raised by potential buyer groups. This included any business plan red flags and a scenario-based downside analysis to stress test the target company under adverse market conditions.
Chen Wei
Chen Wei played an active role in engaging with all key stakeholders involved in the sales process. This included discussions with the Client, as well as the target company’s existing investors and management team, to ensure all relevant areas of concern were thoroughly explored and addressed in a timely manner.
Lam Weng Tim
Tim produced a set of key market outputs on the Middle East onshore drilling sector, providing in-depth insight into market dynamics, the competitive landscape, and the target company’s primary customer groups. Tim also developed a robust valuation model to fairly assess the target company’s fleet.
Ben Wilby
As Westwood’s onshore rig expert, Ben took on an advisory role to ensure the reliability of information provided as well as providing alternative commercial perspectives to reinforce the report’s comprehensiveness. Ben also leveraged onshore industry contacts to underpin existing market intelligence.
