ADNOC Drilling has announced that it has entered into a definitive agreement to acquire an 80% stake in MB Petroleum Services, a leading provider of drilling and oil field services operating in Oman, Kuwait, Saudi Arabia, and Bahrain. Once the required regulatory approvals are obtained, this acquisition will mark the second deal for ADNOC Drilling in the region.
This acquisition is anticipated to significantly accelerate ADNOC Drilling’s regional expansion by enhancing its operational scale, increasing its capabilities, and broadening its presence across four of the Gulf region’s major economies.
Abdullah Atiyah Al-Masabi, CEO of ADNOC Drilling, stated, “This acquisition represents a crucial strategic milestone for our company. We expect it to enhance our capacities and expedite our regional growth, solidifying our position as a primary energy service provider in the region. Following the transaction’s completion, this partnership is expected to widen our regional footprint and enable us to add value for our customers and stakeholders amidst the rapidly evolving energy sector.”
Resilience of ADNOC Drilling’s Business Model
The robustness of ADNOC Drilling’s business model, characterized by operational excellence, integrated services, and a diverse fleet, highlights the company’s ability to efficiently and responsibly conduct its operations while adapting to market changes. With the anticipated completion of the acquisition, following the necessary regulatory approvals, it is expected that this purchase will bolster the company’s operational and financial resilience, allowing adaptability to market fluctuations and delivering dependable results for clients and stakeholders.
This acquisition aligns with ADNOC Drilling’s disciplined approach to capital management, aimed at creating added value in every acquisition while leveraging its strong financial structure through effective resource utilization and achieving sustainable returns. The deal is expected to enhance profitability, reaffirming the company’s commitment to a well-considered growth strategy. The total value of the transaction is approximately AED 749 million (around USD 204 million), encompassing a portfolio of 21 diverse drilling rigs, including land rigs, maintenance rigs, and production service units. The agreement also involves pre-qualifications and the establishment of subsidiaries, reinforcing the company’s presence in four promising geographical areas within the Gulf.
As demand for energy services grows in the region, ADNOC Drilling aims to establish itself as a responsible and efficient energy service provider by capitalizing on available opportunities and offering high-efficiency solutions that enhance shareholder value. The acquisition is expected to be finalized in the first half of 2026, in accordance with applicable terms and conditions, including obtaining the necessary regulatory approvals.
Three Upcoming Acquisitions
Earlier this year, CFO Youssef Salem disclosed that ADNOC Drilling plans to complete three acquisitions in the second half of the year, amounting to a total of approximately USD 500 million, as part of a strategy to expand into technology and equipment that support growth.
He noted that two of these deals would involve companies developing artificial intelligence applications, while the third would focus on acquiring drilling rigs, enhancing the company’s regional expansion efforts in the Middle East.
The company, a subsidiary of the Abu Dhabi government’s ADNOC Group and publicly listed, agreed in May to pay USD 112 million for the majority stake in the drilling operations of SLB in Kuwait and Oman.
In 2021, the Abu Dhabi National Oil Company (ADNOC) publicly offered its drilling unit to raise capital and develop a service company capable of expanding beyond the local market.
ADNOC Drilling plans to commence operations in Kuwait and Oman this year, following its launch in Jordan in 2024.