Archer enlarging its service offering with takeover of Argentinian managed pressure drilling firm

Oslo Stock Exchange-listed oil services company Archer has inked a deal to acquire Air Drilling Associates’ managed pressure drilling (MPD) subsidiary, ADA Argentina.

While the purchase price has not been disclosed, Archer said it would be settled over three years using cash from its existing operations in Argentina. The transaction is expected to be cash-positive after less than two years, adding an estimated 2–4% to the Norwegian firm’s 2025 EBITDA.

Archer’s CEO, Dag Skindlo, noted: “This acquisition fits well with Archer’s strategy of synergetic and accretive bolt-on acquisitions. The technology and services will integrate with Archer’s fleet of high spec drilling rigs and provide our clients with advanced integrated MPD services. The investment supports our clients as they grow their activity in Vaca Muerta, the second largest non-conventional gas and fourth largest non-conventional oil reserve in the world.”

According to Archer, ADA provides its largest clients in Argentina’s Vaca Muerta basin with MPD services, described as an adaptive drilling process used to precisely control the annular pressure profile throughout the wellbore. The Argentinian firm owns and operates three MPD systems, while a fourth set is expected to be provided by the sellers as part of the transaction. 

“There are numerous governmental and client driven initiatives that support the long-term growth of drilling and completion activity in the Vaca Muerta basin, recently evidenced by new legislation for large investments in Argentina and Pan American Energy’s 20-year agreement for gas export with FLNG provider Golar LNG,” said Gerado Molinaro, VP of Land Drilling.

This comes on the heels of another gig the Norwegian company secured in South America – a platform drilling assignment with Equinor off the coast of Brazil. Under the $40 million contract, Archer is set to work on Peregrino A and B platforms for two years starting in November.

The duo also signed a two-year extension deal in the North Sea, where Archer is slated to provide plug and abandonment, fishing, and downhole mechanical isolation equipment services.