Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
ADNOC Drilling has completed the acquisition of a 70% stake in SLB’s land drilling business in Kuwait and Oman, marking a key step in its regional expansion strategy.
In a disclosure to the Abu Dhabi Securities Exchange, the company said ADH RSC Ltd, a wholly owned subsidiary of ADNOC Drilling, has completed the acquisition of a 70% stake in SLDC Holdings RSC Ltd, a joint venture established with SLB to operate land drilling rigs in Kuwait and Oman.
The decision to acquire the stake was first disclosed on May 29, when ADNOC Drilling announced it had signed an agreement with SLB covering the land drilling rigs business in the two countries. The business comprises two operating land rigs in Kuwait and six in Oman, all under long-term contracts with the respective national oil companies, according to the announcement at the time.
Commenting on the completion of the transaction, ADNOC Drilling Chief Financial Officer Youssef Salem said the acquisition would strengthen the company’s regional footprint and support its next phase of growth.
“The new strategic acquisition will strengthen its regional presence and support its business growth in the next phase, as part of its plan to expand beyond the UAE and establish itself as the largest drilling company in the Middle East,” Salem said in a LinkedIn post.
At the time of the original announcement, ADNOC Drilling’s then Chief Executive Officer Abdulrahman Abdulla Al Seiari described the transaction as a natural extension of the company’s growth strategy, noting that the SLB business was well-established, profitable and operating under long-term contracts, making it a complementary and value-accretive addition to the group’s portfolio.
The partnership is expected to provide ADNOC Drilling with immediate access to earnings, cash flow and returns, while enhancing its ability to deploy integrated drilling services, digital solutions and AI-driven efficiencies across key GCC markets, the company said at the time.
With the completion of the acquisition, ADNOC Drilling said its operational rig fleet will expand to 148 rigs, rising further to 169 rigs upon completion of the MBPS transaction, strengthening its geographical presence across the GCC and reinforcing its position as the largest drilling company in the region.
