ADNOC Drilling Partners With SLB To Acquire Land Drilling Rigs In Kuwait And Oman

ADNOC Drilling Company has entered into an agreement to acquire a 70% stake in SLB's land drilling rigs business in Kuwait and Oman. This acquisition involves eight operational land rigs, currently under contract with the national oil companies of both countries.

The acquisition will allow ADNOC Drilling to immediately benefit from earnings, cash flow, and returns through two rigs in Kuwait and six in Oman. This move accelerates their expansion into key Gulf Cooperation Council (GCC) regions, enhancing their regional presence.

Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, stated, "This acquisition is a natural next step in ADNOC Drilling’s growth journey and reinforces our 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."

This acquisition will boost ADNOC Drilling's capability to deploy advanced technologies, integrated drilling services, digital solutions, and AI-driven efficiencies. These enhancements aim to optimize performance while reducing environmental impact and driving value for customers across the region.

Jesus Lamas, President of Middle East and North Africa at SLB, commented on the collaboration: "This partnership reflects the strong collaboration between SLB and ADNOC Drilling, and our shared commitment to driving value through collaboration across the region."

Regulatory Approvals

The formation of this joint venture (JV) and the acquisition of a 70% stake are subject to necessary regulatory approvals. These approvals are anticipated by the first quarter of 2026. Upon completion, ADNOC Drilling plans to consolidate this new business into its financial reporting from that year.

Lamas also expressed confidence in the partnership's potential for growth: "We are confident that, working together with ADNOC Drilling, the business will continue to grow and deliver outstanding performance for our customers."

This strategic move aligns with SLB’s regional growth strategy. It aims to expand broader strategic partnerships with key regional leaders across the energy value chain.

With inputs from WAM