Energy service company Archer Limited (OSE:ARCH) announced on Friday that it has entered into an agreement with a local buyer regarding the potential sale of its workover business in southern Argentina.

The agreement sets out the terms of a potential transaction and required closing conditions.

The proposed divestment covers Archer's operations in the provinces of Chubut and Santa Cruz and includes 12 workover rigs, 12 pulling units, and approximately 750 employees.

Archer said that it expects the potential transaction to close within a short timeframe, although completion is not guaranteed. Following the possible sale, Archer's Land Drilling segment would focus primarily on drilling and workover services in the unconventional Vaca Muerta field, where it previously secured a five-year contract with YPF valued at an estimated USD600m.