ADNOC Drilling Enters Agreement To Acquire 80% Stake In MB Petroleum Services

ADNOC Drilling Company PJSC has announced a definitive agreement to acquire 80% of MB Petroleum Services (MBPS). MBPS is a prominent provider of drilling and oilfield services in Oman, Kuwait, Saudi Arabia, and Bahrain. This acquisition, pending regulatory approvals, is ADNOC Drilling's second in the region and aims to enhance its regional expansion strategy by strengthening its presence in these key Gulf economies.

The deal is valued at $204 million (AED749 million) and includes a portfolio of 21 drilling and workover rigs. It also comprises production service units, pre-qualifications, subsidiaries, and an established presence across four Gulf countries. ADNOC Drilling remains committed to maintaining strict capital discipline, ensuring that each investment aligns with its financial framework.

This acquisition exemplifies ADNOC Drilling's focus on prudent capital allocation and sustainable returns. The company expects this transaction to generate attractive returns while reinforcing its position as a leading energy services provider in the region. Abdulla Ateya Al Messabi, CEO of ADNOC Drilling, stated, "This is a defining moment in ADNOC Drilling’s journey. The transaction represents a strategic leap that is expected to amplify our capabilities, accelerate our regional momentum and reinforce our position as a key energy services provider in the region."

Upon completion of the acquisition, subject to regulatory approvals, ADNOC Drilling anticipates enhanced operational and financial resilience. This will enable the company to navigate market cycles effectively while delivering reliable results for clients and shareholders. The company's robust business model focuses on operational excellence, integrated services, and a diversified fleet.

The demand for energy services is increasing across the region. ADNOC Drilling is strategically positioned to capture this growth by delivering high-performance solutions that unlock shareholder value. The transaction is expected to close in the first half of 2026, contingent upon customary conditions and receipt of necessary regulatory approvals.

This partnership not only aims to strengthen ADNOC Drilling's regional footprint but also positions it to deliver enhanced value to clients and shareholders amidst a rapidly evolving energy landscape. By expanding its capabilities through this acquisition, ADNOC Drilling seeks to maintain consistent performance while adapting to changing market dynamics.

With inputs from WAM