ADNOC Drilling Company has secured an agreement to purchase an additional two offshore jack-up drilling units at a total value of US$200mn
The transaction aligns with the UAE-based firm’s fleet expansion strategy to boost the organisation’s accelerated production capacity target of 5mn bpd by 2027.
Since the beginning of 2021, ADNOC Drilling almost doubled its offshore jack-up rig fleet to 32, with further major expansion forecast in 2023 and beyond.
In a bourse filing, the firm indicated that the acquisition comes in line with its growth plans and the three-year guidance on capital expenditure, adding that the capital investment will be registered during the years 2022 and 2023.
Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, said, “[The transaction] is yet another important step in the execution of our strategy to rapidly grow our business, significantly boost revenues and increase shareholder returns. It also cements our position as one of the world’s largest jack-up rig fleet owners.”
He continued, “Our objective is to be operating a total fleet of at least 122 owned rigs by 2024, and at our fleet’s current, accelerated rate of growth we will easily surpass that milestone. Our rig acquisitions will deliver exceptional revenue growth with strong profitability margins.”
The company bought three offshore jack-up drilling units worth US$320mn last year to anchor its financial and operating performance and benefit its clients, shareholders, and the UAE.
