Riyadh, Saudi Arabia — The Public Investment Fund (PIF) has formally announced the signing of a share subscription agreement to infuse capital into Alkhorayef Petroleum, a subsidiary of Alkhorayef Group.
Through this agreement, PIF secures a 25 percent shareholding in the oil and gas production optimization solutions provider, with Alkhorayef Group retaining the majority stake of 75 percent.
PIF said the investment underscores its strategy to foster the growth of Saudi Arabia’s equipment and service sector, aiming to fortify promising private enterprises and advance the nation’s industrial ecosystem, thereby contributing to an uptick in export revenues.
Alkhorayef Petroleum specializes in artificial lift, wireline services and equipment, as well as early production facilities.
As the exclusive Gulf-based manufacturer of electric submersible pumps, critical to oil and gas production, the company boasts a diversified revenue base and a successful operational track record spanning 13 countries across the Gulf Cooperation Council, Africa, and Latin America.
This strategic move is anticipated to reinforce the company’s standing in the energy services industry, creating enduring value for shareholders while enhancing supply chains in Saudi Arabia’s energy services sector, PIF said.
Mohammad Aldawood, Head of Industrials and Mining sector in MENA Investments at PIF, said, “Alkhorayef Petroleum’s growth strategy in local and international markets, coupled with expanded manufacturing output and innovative R&D, aligns seamlessly with PIF’s domestic vision and commitment to supporting the delivery of Vision 2030.”
Saad Alkhorayef, Chairman of Alkhorayef Petroleum and Alkhorayef Group, said, “PIF’s investment is a pivotal moment in our journey, strengthening our position as a leading oilfield services company and preferred long-term partner globally. We are confident that this partnership will propel the company towards becoming one of the world’s premier oilfield services companies.”