Petroleum International
A Premier Investment in Middle East Energy Services
Confidential Investment Proposal | 2024
The Mandate: Powering Regional Growth
Our Mission
"To become the premier high-specification land rig leasing partner for National and International Oil Companies, capitalizing on unprecedented regional production growth."
Strategic Focus
Target the high-demand onshore drilling sector in the GCC, starting with Saudi Arabia and Iraq
Operational Excellence
Deploy a fleet of modern, high-specification (2,000HP+) rigs to maximize efficiency and command premium day rates
Financial Strength
Leverage a proven finance-lease-repay model to generate rapid, predictable returns for investors
Executive Summary: The Investment Thesis
The Market
A $5.6 Billion Market with Structural Tailwinds
The Middle East equipment rental market is structurally sound, projected to grow at a 5.2% CAGR, driven by a strategic shift from CAPEX to OPEX and state-mandated production increases.
The Strategy
Onshore Focus, Premium Assets
Exclusive focus on the less capital-intensive, high-demand onshore market. Acquire a fleet of modern 2,000HP rigs to meet the technical demands of clients like Saudi Aramco.
The Financials
Compelling Unit Economics & Rapid ROI
Each rig is projected to generate over $7.3M in annual revenue, with a strong 40% EBITDA margin and an attractive payback period of under 3 years.
The Ask
Securing Capital for Fleet Acquisition
Seeking initial financing to acquire the foundational rig fleet, secured by tangible assets and long-term contracts with blue-chip counterparties.
A Market in Structural Growth
Middle East Oilfield Equipment Rental Market Growth
5.2% CAGR from $5.6B (2024) to $8.78B (2033)
Key Market Drivers
01
The CAPEX-to-OPEX Shift
E&P operators are increasingly renting to preserve capital, enhance flexibility, and avoid technological obsolescence. This is a permanent structural change, not a cyclical trend.
02
State-Mandated Expansion
National champions like Saudi Aramco and Iraq's Ministry of Oil are driving demand through multi-year production capacity expansion programs (e.g., Vision 2030).
03
Technological Imperative
Unconventional resources (like the Jafurah field) require high-horsepower, technologically advanced rigs, creating a premium segment where we will operate.
Strategic Focus: The Onshore Advantage
Capital Efficiency
Onshore rigs require an order-of-magnitude lower CAPEX than offshore assets, enabling faster fleet scaling and a significantly de-risked financial profile. This capital efficiency allows us to deploy more assets faster and generate returns sooner.
Faster Return on Investment
The combination of lower acquisition costs and strong, stable day rates leads to highly attractive payback periods and superior investor returns. Our model projects full asset payback in under 3 years.
Market Alignment
Our target day rate of ~$23,000 is perfectly aligned with the current market for high-specification onshore rigs in the GCC, validating our financial model from day one. This rate reflects real market conditions, not aspirational projections.
Target Asset: The 2,000HP Workhorse
Fleet Profile: Modern, Efficient, In-Demand
Horsepower
2,000 HP AC Power Drive
Drilling Depth
Rated for 5,000 - 7,000 meters
Hook Load
~750,000 lbs capacity

Advanced Technology Package
Equipped with top drives, automated pipe handling, and digital monitoring systems. Meets the precise technical requirements for complex drilling programs in both Saudi Arabia and Iraq.
Client Demand
These specifications align perfectly with the technical demands of major regional operators, positioning us to capture premium contracts with blue-chip counterparties.
The Financial Blueprint: Per-Rig Economics
Robust Unit Economics Drive Profitability
Core Assumptions
$8M
Asset Acquisition
Premium, certified rig CAPEX
$23K
Contracted Day Rate
Market-aligned pricing
320
Annual Operating Days
87.6% utilization rate
$7.36M
Annual Revenue
Per rig projection
Financial Performance
Daily Operating Cost (OPEX)
~$13,800
Annual EBITDA
~$2.94 Million
EBITDA Margin
40%
EBITDA Payback
2.7 Years
Illustrative 5-Year Financial Projection (Per Rig)
Projecting Strong, Stable Cash Flow

Model demonstrates strong profitability and capacity to service debt while generating significant free cash flow. The conservative assumptions and proven market rates provide confidence in these projections, with built-in buffers for operational variability.
Acquisition & Finance Strategy
A Disciplined Approach to Fleet Acquisition
Asset Sourcing
Acquire a fleet of premium, certified used or new-build 2,000HP rigs. Capitalize on market opportunities to acquire high-value assets at disciplined prices. Our technical team conducts rigorous due diligence on every asset.
Shari'ah-Compliant Financing
Structure the acquisition via an Ijarah (lease-to-own) facility. This aligns with regional capital markets, accessing a deep pool of Islamic finance. The structure is well-understood by GCC banks and provides competitive terms.
Contract-Backed Security
Secure long-term (3-5 year) contracts with NOCs before financial close, providing financiers with guaranteed revenue streams and mitigating commercial risk. This de-risks the investment for all stakeholders.
The Ijarah Financing Structure
How It Works: A Partnership Model
IDENTIFY
Petroleum International selects the specific rig assets and negotiates the price with the manufacturer/seller
PURCHASE
The Islamic Bank purchases the rig, taking legal title to the asset
LEASE
The Bank leases the rig to Petroleum International for a pre-agreed term and rental payment schedule
TRANSFER
At the end of the lease term, ownership of the rig is transferred to Petroleum International
A standard, low-risk, asset-backed structure prevalent in the GCC, with tenors up to 10 years. This approach has been successfully deployed across multiple sectors in the region, providing financiers with tangible security and borrowers with flexible terms.
Target Market 1: Saudi Arabia
The Epicenter of Demand - Unlocking the Kingdom's $1.88 Billion Market
Largest Regional Market
Represents the most stable, high-volume source of demand in the GCC, with established procurement processes and creditworthy counterparties
Aramco's Growth Mandate
Drilling expenditure is forecast to grow at 13% CAGR to meet ambitious production targets tied to Vision 2030 objectives
High-Spec Demand
Over 65% of the KSA land rig fleet is 1,500HP or greater, confirming demand for our target assets and validating our technical specifications
Bilateral Advantage
Strong Omani-Saudi agreements provide a unique pathway to navigate market entry regulations and position us favorably in tender processes
Target Market 2: Iraq
A High-Growth Opportunity - Tapping into a Production Expansion Drive
1
Ambitious Targets
Iraq aims to increase production capacity to 7 million bpd by 2029, requiring a major increase in rig utilization across multiple fields. This represents one of the most aggressive expansion programs in the region.
2
Proven Demand
Tenders explicitly call for 1,500HP and 2,000HP rigs for major reservoirs. Our asset specifications directly match published tender requirements from the Ministry of Oil and major IOCs operating in-country.
3
Strategic Omani Ties
New bilateral energy cooperation agreements between Oman and Iraq provide a powerful diplomatic and commercial framework, mitigating entry risks and facilitating regulatory approvals.
4
Cautious Entry
Our strategy is to enter only upon securing a contract with a creditworthy counterparty, with payment secured by a Letter of Credit (LC). We will not deploy assets without ironclad payment guarantees.
Corporate & Legal Framework
An Agile and Compliant Operational Hub
Omani Domicile
Operating through a legacy Omani entity provides regional credibility and access to preferential treatment under GCC bilateral agreements. Oman's legal framework allows 100% foreign ownership and features a streamlined "Temporary Export" regime, ideal for cross-border rig deployment without permanent asset transfer.
Shareholder Structure
The corporate structure will be revitalized with new, strategic shareholders whose expertise in marketing and contract negotiation is critical to securing long-term lease agreements. This injection of operational expertise complements the existing legal and financial foundation.
Cross-Border Compliance
We will establish a legal presence in target markets as required (e.g., a branch office in Iraq) and leverage strong bilateral agreements to ensure full compliance and preferential treatment. Our legal team has extensive experience navigating GCC regulatory environments.
Risk Mitigation Framework
Proactively Managing Key Risks
Oil Price Volatility
Mitigation: Secure long-term (3-5 year) fixed-rate contracts with NOCs, whose strategic projects are less sensitive to short-term price swings. Our clients operate on multi-year development programs insulated from spot price fluctuations.
Counterparty & Payment (Iraq)
Mitigation: Contract only with reputable IOCs or government entities. Mandate Irrevocable Letters of Credit (LCs) to secure payment. Leverage Omani-Iraqi diplomatic channels for support in case of disputes.
Regulatory Hurdles (Saudi RHQ)
Mitigation: Leverage the Omani-Saudi bilateral agreement on "equal treatment for companies in government tenders" to position Petroleum International as a GCC entity, exempt from the Regional Headquarters (RHQ) requirement.
Geopolitical Instability
Mitigation: Focus operations in stable, well-established production zones (e.g., Eastern Province KSA, Basra region Iraq). Implement robust security protocols and build strong local partnerships with established contractors.
Detailed Market Data
Regional Market Size and Growth Projections
Data represents onshore drilling equipment rental and leasing services only. Market growth is driven by increasing rig count requirements, technological upgrading cycles, and the structural shift from capital ownership to operational leasing models among E&P operators.
Target Asset Specifications
Technical Deep Dive: 2,000HP Land Rig
Core Drilling Capabilities
  • Drawworks Power: 2,000 HP AC Variable Frequency Drive
  • Maximum Drilling Depth: 7,000 meters (23,000 feet)
  • Hook Load Capacity: 750,000 lbs static / 500,000 lbs traveling
  • Rotary Table: 27.5" or 37.5" opening
  • Pumps: Two 1,600 HP mud pumps
  • Derrick Rating: 1,000,000 lbs capacity
  • Mast Type: Cantilever or conventional, trailer-mounted
Automation & Safety
  • Top Drive System: 500-ton rated capacity
  • Iron Roughneck: Automated pipe handling system
  • BOP Control: Dual-redundant hydraulic control system
  • SCADA Monitoring: Real-time drilling parameter tracking
  • HSE Compliance: Full compliance with Saudi Aramco SAEP standards
Transport & Mobility
  • Rig-Up Time: 5-7 days for full commissioning
  • Transport Configuration: 40-50 truck loads
  • Power Requirements: 3,000 KW generator set
  • Footprint: Approximately 100m x 80m operational area
Maintenance & Support
  • Service Intervals: Preventive maintenance every 500 operating hours
  • Expected Uptime: 90%+ with proper maintenance protocols
  • Spare Parts: Critical spares package included with acquisition
  • Manufacturer Support: OEM service agreements in place
Legal & Regulatory Deep Dive: Saudi Arabia
Navigating the Regional Headquarters (RHQ) Requirement
1
The Challenge
Saudi Arabia's RHQ program requires foreign companies bidding on government contracts (>5M SAR) to establish a Regional Headquarters in Riyadh, incurring significant costs and operational commitments.
2
Our Strategic Solution
The 2019 Omani-Saudi Economic Partnership Agreement includes a provision for "equal treatment of companies in government tenders," effectively exempting qualifying Omani entities from the RHQ requirement.
3
Legal Foundation
Petroleum International, domiciled in Oman with Omani registration, qualifies for this exemption. Our legal counsel has obtained preliminary confirmation from the Saudi Ministry of Investment that our structure meets the criteria.
4
Contingency Planning
Should formal RHQ establishment become necessary for specific contracts, we have identified cost-effective structures (shared service arrangements) that minimize the financial burden while maintaining compliance.

Competitive Advantage: This bilateral agreement gives Petroleum International a significant edge over non-GCC competitors who must absorb the full cost and complexity of RHQ establishment, estimated at $2-3M annually.
Legal & Regulatory Deep Dive: Iraq
Establishing Compliant Operations in a High-Potential Market
Regulatory Requirements
01
Branch Office Registration
Foreign companies must register a branch office with the Iraqi Companies Registration Office. Process takes 4-6 weeks with proper documentation and local legal counsel.
02
Ministry of Oil Qualification
To bid on oil sector tenders, companies must be pre-qualified by the Ministry of Oil, demonstrating technical capability, financial strength, and relevant experience.
03
Tax Registration & Compliance
Obtain Iraqi Tax Identification Number and register for withholding tax purposes. Standard corporate tax rate is 15% on Iraqi-source income.
04
Work Permits & Visas
Secure work permits for expatriate technical staff and management. Process coordinated through Ministry of Labor and Social Affairs.
Bilateral Framework Advantages
The 2022 Oman-Iraq Memorandum of Understanding on Energy Cooperation provides:
  • Fast-Track Processing: Expedited approval for Omani companies in energy sector
  • Diplomatic Support: Direct channel to Iraqi Ministry of Oil for dispute resolution
  • Market Intelligence: Access to tender information and qualification criteria
  • Payment Security: Framework for LC requirements and banking arrangements
Payment Security Mechanisms
All contracts in Iraq will require:
  • Irrevocable Letters of Credit from internationally recognized banks
  • Payment terms of Net 30 or better
  • Performance bonds backed by creditworthy guarantors
  • Escalation clauses for payment delays beyond 60 days
Implementation Roadmap
A Phased Path to First Revenue
1
Phase 1: Foundation & Financing
Months 1-3
Key Milestones:
  • Finalize corporate structure and shareholder agreements
  • Engage legal counsel in Oman, Saudi Arabia, and Iraq
  • Develop comprehensive financing memorandum
  • Begin roadshow with Islamic banks and institutional investors
  • Initiate preliminary discussions with target clients
2
Phase 2: Market Entry & Contracting
Months 4-6
Key Milestones:
  • Secure definitive RHQ clarification from Saudi authorities
  • Complete branch office registration in Iraq
  • Aggressively pursue anchor contract in Saudi Arabia
  • Qualify with Saudi Aramco and Iraqi Ministry of Oil
  • Submit proposals for identified tender opportunities
3
Phase 3: Financial Close & Asset Acquisition
Months 7-12
Key Milestones:
  • Secure binding financing term sheet from Islamic bank
  • Execute definitive contract with anchor client
  • Execute Ijarah agreement for initial rig fleet
  • Complete purchase and acceptance of first 2-3 rigs
  • Arrange insurance and logistics for rig transport
4
Phase 4: Mobilization & Operation
Months 13-18
Key Milestones:
  • Complete refurbishment and certification of rigs
  • Process temporary export documentation from Oman
  • Mobilize rigs to client site in Saudi Arabia or Iraq
  • Complete rig commissioning and safety inspections
  • Commence revenue-generating drilling operations
Market Validation: Current Tender Activity
Real-World Demand Signals
Our financial projections and market assumptions are validated by current tender activity in both target markets. The following represents a sample of active opportunities that match our asset specifications and commercial model:
Saudi Aramco - Unconventional Resources Program
Tender: 8 x 2,000HP rigs for Jafurah gas field development
Contract Term: 5 years with 2-year extension option
Day Rate Range: $22,000 - $25,000
Status: Pre-qualification phase, submission deadline Q2 2024
Basra Oil Company - Field Development
Tender: 6 x 1,500-2,000HP rigs for Southern Iraq fields
Contract Term: 3 years firm
Day Rate Range: $20,000 - $23,000
Status: Tender published, technical evaluation underway
IOC Partner - Zubair Field Expansion
Requirement: 4 x 2,000HP rigs for major IOC operating in Iraq
Contract Term: 4 years
Day Rate Range: $23,000 - $26,000 (includes LC guarantee)
Status: Direct negotiation with pre-qualified contractors
Competitive Positioning
Our Unique Value Proposition in a Fragmented Market
Our Competitive Advantages
Premium Assets, Lean Structure
We combine the asset quality of major players with the operational efficiency and speed of local contractors
Bilateral Treaty Benefits
Unique Omani domicile provides preferential access without the cost burden of RHQ establishment
Focused Execution
Unlike diversified majors, 100% of our management bandwidth is dedicated to onshore GCC success
Financial Innovation
Purpose-built for Ijarah financing, accessing deep pools of Shari'ah-compliant capital unavailable to many competitors
Scaling Strategy: Path to 20-Rig Fleet
Building Enterprise Value Through Disciplined Growth
Phase 1: Proof of Concept
Rigs 1-3
Timeline: Months 1-18
Strategy: Secure anchor contract in Saudi Arabia, demonstrate operational excellence, establish track record with blue-chip client
Capital Required: $24M (financed via Ijarah)
Revenue: $22M annually (Year 2+)
Phase 2: Market Penetration
Rigs 4-8
Timeline: Months 19-30
Strategy: Leverage proven performance to win additional contracts, enter Iraq market with LC-secured deals, establish service excellence reputation
Capital Required: $40M (financed + retained earnings)
Revenue: $58M annually (Year 3+)
Phase 3: Market Leader
Rigs 9-20
Timeline: Months 31-48
Strategy: Scale operations across multiple fields in both countries, develop strategic partnerships with IOCs, consider acquisition opportunities
Capital Required: $96M (multiple finance sources)
Revenue: $147M annually (Year 5+)
By Year 5, a 20-rig fleet generating $147M in annual revenue with 40% EBITDA margins ($59M) would command an enterprise value of $350-450M at industry-standard 6-8x EBITDA multiples, providing exceptional returns to early investors.
Summary of Opportunity
A Compelling, De-Risked Investment
>$7.3M
Projected Annual Revenue
Per Asset
40%
Target EBITDA Margin
Industry-leading profitability
<3
Years to Payback
Projected EBITDA payback period
$5.6B
Total Addressable Market
Growing at 5.2% CAGR
5-7
Contract Duration
Years with blue-chip NOCs
87.6%
Target Utilization
320 operating days annually
Why Petroleum International Represents an Exceptional Investment
Market Fundamentals
  • Structural CAPEX-to-OPEX shift
  • State-mandated production growth
  • Premium asset supply constraints
  • Proven market day rates
Competitive Position
  • Bilateral treaty advantages
  • Purpose-built for Islamic finance
  • Lean cost structure
  • Focused regional strategy
Financial Discipline
  • Asset-backed financing
  • Contract-secured revenue
  • Conservative assumptions
  • Rapid cash generation