Maersk Drilling, a part of A.P. Moller-Maersk, said late on Monday it has agreed to sell its 50 percent stake in Egyptian Drilling Company (EDC) to Egyptian General Petroleum Corporation (EGPC) for $100 million in an all-cash transaction.
In a statement on Monday, Maersk said that the EGPC will become the sole owner of EDC, and will as part of the agreement take over the entire portfolio, obligations and rights following the agreed transaction.
The Egyptian Drilling Company operates 70 rigs in total, of which the vast majority are land-based drilling rigs.
According to Maersk, the divestment of EDC comes in line with Maersk Drilling’s strategy to focus on offshore drilling in harsh environments and deepwater markets
The EDC currently employs approximately 5,000 people, of which 34 are Maersk Drilling employees, with Maersk adding that it is currently looking into future job opportunities for its employees in EDC.