Headquartered in Abu Dhabi, United Arab Emirates, ADNOC Drilling is the largest national drilling company in the Middle East by rig fleet. ADNOC Drilling in the UAE is forecasting significant growth, expecting to invest over $1 billion by 2025. The company also plans to expand its operations in Oman and Kuwait, reported by Arab News.
Youssef Salem, the company’s chief financial officer, discussed the expansion strategy, underscoring ADNOC Drilling’s confidence in the long-term sound plans of the companies operating in these countries. Salem shared that the firm’s expansion into these Gulf countries, along with its existing operations in Jordan, is based on establishing strong relationships with local operators. ADNOC Drilling has already pre-qualified with these entities and is focusing on organic growth through partnerships and joint ventures with established regional players.
Most of the revenue comes from the UAE
In terms of the financial impact of the investment, Salem noted that Kuwait is currently a large market with plans to expand to 200 rigs, while Oman is also increasing its market to 100 rigs. So, these two markets together are almost three times the size of the UAE’s rig market. Salem noted the ongoing shift in ADNOC Drilling’s revenue sources. Overall, the vast majority of revenue comes from the UAE.
The CFO detailed the company’s expected growth in 2025, with the onshore segment expected to potentially exceed $2 billion, the offshore segment to reach over $1.4 billion, and oilfield services to exceed $1.2 billion, representing approximately 50% of the annual growth. Thus, in 2025, the volume of onshore services will potentially exceed $2 billion, the offshore sector will exceed $1.4 billion, and oilfield services will exceed $1.2 billion, which is another almost 50% increase compared to last year.
The company plans to invest more than $1 billion
He also said that the company plans to invest more than $1 billion in 2025. Of this, $350 million to $550 million will be directed to additional drilling rigs and oilfield service equipment in the UAE, to reach 151 drilling rigs by 2028. In addition, ADNOC Drilling is allocating $700 million to Enersol, its joint venture with Alpha Dubai, which focuses on investing in global energy technology companies, especially those involved in artificial intelligence.
Salem also highlighted the company’s recent acquisitions, noting that ADNOC Drilling completed four acquisitions worth $800 million in the previous year and plans further acquisitions totaling $700 million in 2025. The onshore segment generated $1.9 billion in revenue from 95 land-based rigs, the largest source of onshore drilling in the Middle East and North Africa.