ADNOC Drilling expands regional footprint with SLB rig deal

ADNOC Drilling has signed an agreement to acquire a 70% stake in SLB's land drilling rigs business in Kuwait and Oman, as it seeks to expand its regional footprint beyond the UAE

Under the deal, ADNOC Drilling will acquire eight fully operational land rigs under contract with the respective national oil companies (NOCs) of both countries, two in Kuwait and six in Oman. It will accelerate ADNOC Drilling’s expansion plans, providing it with a foothold into what it sees as two highly stable GCC markets with clear drilling plans driven by top-tier clients, in a move that will generate attractive returns.

Through this partnership, ADNOC Drilling will gain immediate access to earnings, cashflow and returns through the eight land rigs. This acquisition will enhance the company’s ability to deploy cutting-edge technologies, integrated drilling services, digital solutions and AI-driven efficiencies, according to the company – optimising performance, reducing environmental impact and driving value for customers across the region. The deal offers scope for ADNOC Drilling to acquire the remaining stake over time.

Abdulrahman Abdulla Al Seiari, ADNOC Drilling CEO, commented that the move is a “very exciting opportunity” for ADNOC Drilling, reinforcing its position as one of the leading companies in drilling and integrated services.

“Our partnership with SLB will provide ADNOC Drilling with a solid operational and financial platform to further expand in the region,” he said. “This business is well-established, profitable and operating with long-term contracts, making this a highly complementary and value-accretive addition to our portfolio. This move represents a calculated and cost-effective approach with a clear focus on financial discipline, value accretion and risk management.”

Jesus Lamas, president, Middle East and North Africa, SLB, added, “This partnership reflects the strong collaboration between SLB and ADNOC Drilling, and our shared commitment to driving value through collaboration across the region. We are confident that, working together with ADNOC Drilling, the business will continue to grow and deliver outstanding performance for our customers. We look forward to expanding our broader strategic partnerships with key regional leaders across the energy value chain, in line with SLB’s focused regional growth strategy."

ADNOC Drilling continues to record strong growth, fuelled by the expansion of its onshore and offshore fleets, as well as the continued growth of the oilfield services (OFS) segment and new joint ventures launched in 2024. The company now has the largest fleet in the Middle East, seeing net profits rise by 26% in 2024 to US$1.3bn.