ADNOC Drilling plans oil rig deal in Kuwait, Oman
(Bloomberg) -- ADNOC Drilling Co. is planning to buy a company operating oil and gas rigs in Kuwait and Oman, which would be the second such deal in less than a year as the United Arab Emirates-based firm expands beyond its home market.
The company, a listed unit of Abu Dhabi’s government-owned oil giant, is targeting the acquisition for later this year or early 2026, Chief Financial Officer Youssef Salem said in an interview.
ADNOC Drilling agreed in May to pay $112 million for the majority of SLB’s drilling business in Kuwait and Oman. The new deal would likely be “the same structure, the same size” to give ADNOC Drilling additional scope without raising risk of overexposure, Salem said.
Parent company Abu Dhabi National Oil Co. spun off the drilling unit in 2021, part of a push to list several divisions aimed at raising cash and giving investors access to the UAE’s energy earnings. While ADNOC's publicly traded units have pursued deals to build capacity and extend their international reach, they’re also still highly reliant on contracts at home.
Salem said he’s “super bullish” about the company’s prospects as it has bookings with ADNOC underpinning revenue growth next year. The company is drilling wells — using a process called fracking — in unconventional oil and gas fields on land in Abu Dhabi.
See also: ADNOC Drilling secures five-year, $800 million contract for oilfield services
In Abu Dhabi’s offshore areas, ADNOC Drilling has contracted rigs for the expansion of the Upper Zakum field, an ADNOC joint venture with Exxon Mobil Corp. Six rigs are set to begin operating at the project between 2026 and 2028.
ADNOC Drilling is also on track to complete two more deals for technology-linked services companies by the end of this year, Salem said. The deals, through its Enersol joint venture with Alpha Dhabi Holding PJSC, will be valued at about $350 million, he said.
