News

Exciting developments in the energy sector, as Saudi Aramco has allocated an additional US$4 billion in funding over the next four years to its global venture capital arm, Aramco Ventures. This substantial increase will more than double the capital allotted to Aramco Ventures, increasing its total investment allocation from US$3 billion to US$7 billion. This comes after the successful completion of more than 145 investments across three continents and ten cities. 

Prior to the new capital allocation, Aramco Ventures managed three funds. These are a Digital/Industrial Fund, which stood at US$500 million, investing in technologies of strategic importance to Aramco; the Prosperity7 Fund with US$1 billion, investing in disruptive technology ventures beyond the energy sector; and the Sustainability Fund, which stood at US$1.5 billion and invests in start-ups with potential to support Aramco’s ambition to achieve net-zero Scope 1 (Direct emissions) and Scope 2 (Indirect emissions) greenhouse gas emissions across its wholly-owned and operated assets by 2050. The Sustainability Fund was announced just over a year ago, so to see Aramco doubling down on their sustainability efforts in a notably short period of time is applaudable and continues to strengthen the positive outlook for investment within the region. 

Recent strides for Aramco in the renewable sector include an Aramco Ventures led US$10 million series A funding round for REDEX in November, a renewable energy certificate (REC) service provider based in Singapore. The new funding will allow the company to expand beyond Asia, and to further innovate in streamlining and digitizing the issuance and trading of RECs. 

On the wider energy sector M&A scene, a substantive definitive agreement was recently reached for the US$210 million cash and equity acquisition by Expro of Coretrax, a technology leader in performance drilling tools and wellbore cleanup, well integrity and production optimization solutions, from an investment group led by Buckthorn Partners. The acquisition will enable Expro to expand its portfolio globally and notably within the MENA region.

Ashtead Technologies acquired Ace Winches in November 2023 and recently posted a technology showcase in Abu Dhabi, highlighting their Middle East expansion objectives.

Following the announcement of leading private equity firm SCF Partners formation of energy transition cluster D2Zero comprising Score Group, Hydrasun, Fuel Cell Systems Ltd., Powerstar and Global E&C with a combined turnover of £500 million and 4000 employees, they have announced the acquisition of Flowchem, Seaweld and Val-Tex.

For companies pursuing M&A in the Saudi market, HFI’s Saudi Arabia Ventures Initiative (SAVI) presents a strategic avenue for success.  With a foundation built on over 20 years of expertise, SAVI is uniquely positioned to facilitate M&A activities, streamlining the complexities of market entry and expansion. HFI’s SAVI team includes Mark O’Toole, a Specialist Legal Consultant, who specialises in M&A work in the energy sector.