ADNOC Drilling Company PJSC announced, in a release sent to Rigzone on Thursday, that it has signed an agreement to acquire a 70 percent stake in SLB’s land drilling rigs business in Kuwait and Oman.
ADNOC outlined in the release that the business comprises “eight fully operational land rigs under contract with the respective national oil companies (NOCs) of both countries”. The company noted that, through this partnership, it will gain immediate access to earnings, cashflow, and returns through two operating land drilling rigs in Kuwait and six in Oman, “accelerating its expansion into key GCC geographies”.
“This acquisition will enhance the company’s ability to deploy cutting-edge technologies, integrated drilling services, digital solutions and AI-driven efficiencies – optimizing performance, reducing environmental impact, and driving value for customers across the region,” ADNOC highlighted in the release.
The company went on to state that formation of the joint venture and the acquisition of a 70 percent stake, along with the completion of this transaction, are subject to necessary and customary regulatory approvals, expected in Q1 2026.
“Upon closing, and subject to final assessment by the company’s auditor, ADNOC Drilling expects to fully consolidate the newly acquired business in its financial reporting from 2026,” the company revealed.
In the release, ADNOC Drilling CEO Abdulrahman Abdulla Al Seiari, said, “this acquisition is a natural next step in ADNOC Drilling’s growth journey and reinforces our position as one of the leading companies in drilling and integrated services”.
“Our partnership with SLB will provide ADNOC Drilling with a solid operational and financial platform to further expand in the region,” Al Seiari added.
“This business is well-established, profitable and operating with long-term contracts, making this a highly complementary and value-accretive addition to our portfolio. Our focus is on disciplined expansion that drives performance, returns and growth,” the ADNOC Drilling CEO continued.
Jesus Lamas, President, Middle East and North Africa, SLB, said in the release, “this partnership reflects the strong collaboration between SLB and ADNOC Drilling, and our shared commitment to driving value through collaboration across the region”.
“We are confident that, working together with ADNOC Drilling, the business will continue to grow and deliver outstanding performance for our customers,” he added.
“We look forward to expanding our broader strategic partnerships with key regional leaders across the energy value chain, in line with SLB’s focused regional growth strategy,” he went on to state.
In a release posted on its site back in December 2024, ADNOC announced the closing of a deal to create Turnwell Industries LLC OPC (Turnwell), which it described at the time as a joint venture between ADNOC Drilling, SLB, and Patterson-UTI TW Holdings LLC.
ADNOC Drilling holds a 55 percent majority equity stake, SLB holds a 30 percent equity stake, and Patterson-UTI holds the remaining 15 percent equity stake, ADNOC highlighted in that release, which stated that the joint venture “cements a powerful partnership that will lead the UAE’s new unconventional energy journey”.
ADNOC Offshore Deal
In a separate release sent to Rigzone last week, ADNOC Drilling announced the award of a $1.15 billion, 15-year contract for two jack-up rigs by ADNOC Offshore “in support of its growing offshore operations”.
ADNOC Drilling noted in that release that the contract will follow existing agreements, “bringing accretive rates that generate long-term revenue and attractive returns”. It went on to state that the new rigs represent the latest generation of jack-up rigs and highlighted that they have been prepared for operations at the Lamprell shipyard in Sharjah.
“This is aligned with the company’s fundamental commitment to not only deliver high-quality solutions but drive In-Country Value and contribute to the UAE’s economic development by fostering local partnerships and prioritizing homegrown innovation,” ADNOC Drilling noted.
The rigs will “leverage advanced digitalization, real-time data analytics and AI as ADNOC Drilling continues to deploy the technology throughout its fleet to improve safety, efficiency and maximize asset value and operational uptime,” the company said in the release.
ADNOC Drilling revealed in the release that the rigs are expected to commence operations around the end of the second quarter, “delivering revenue in the second half of 2025 onwards”.
In this release, Al Seiari said, “this new contract is a clear vote of confidence in ADNOC Drilling’s technical leadership, operational excellence and long-term value creation”.
“By integrating artificial intelligence (AI), automation and digitalization capabilities, the two new jack-up rigs, our newest and most advanced jack-up rigs, will ensure superior efficiency and performance for our client ADNOC Offshore,” the CEO added.
“With this contract securing operations until 2040 and beyond, and providing strong, resilient and predictable returns, we are not only reinforcing our role in achieving ADNOC’s production capacity milestones but also driving sustainable long-term growth for our shareholders,” the CEO continued.
Tayba Abdul Rahim Al Hashemi, Chief Executive Officer of ADNOC Offshore, said in the release, “in the past month, ADNOC Offshore has awarded long-term contracts worth c. $3.6 billion to ADNOC Drilling to safely accelerate our production capacity growth plans”.
“ADNOC Drilling’s advanced fleet of jack-up and island rigs, market leading integrated drilling services and cutting-edge technologies are critical enablers to deliver ADNOC’s ambitious strategy,” Al Hashemi added.
“This partnership will help us to sustainably meet the world’s growing energy demands and maximize value for shareholders for decades to come,” Al Hashemi went on to note.
In a release posted on its site on May 5, ADNOC Drilling announced that it had been awarded a contract for three island rigs by ADNOC Offshore for an estimated total contract value of $806 million, “to support expanding operations at the offshore Zakum development project”.
In a release posted on its site on April 17, ADNOC Drilling announced that it had received a letter of award for a $1.63 billion, five-year contract for Integrated Drilling Services (IDS) from ADNOC Offshore.
“This landmark award reinforces ADNOC Drilling’s unique position within ADNOC Group and as the region’s leading provider of advanced, integrated energy services, reflects the strength of its strategy to expand its fleet, service offerings and capabilities,” ADNOC Drilling noted in that release.
