Abu Dhabi: ADNOC Drilling Company announced that it has signed an agreement to acquire a 70% stake in SLB's land drilling rigs business in Kuwait and Oman, which includes eight fully operational land rigs under contract with the respective national oil companies of both countries.
According to Emirates News Agency, Abdulrahman Abdulla Al Seiari, ADNOC Drilling CEO, stated that the acquisition marks a natural progression in the company's growth trajectory, reinforcing its position as a leader in drilling and integrated services. The partnership with SLB is expected to provide ADNOC Drilling with a robust operational and financial platform to expand further in the region. The business is established, profitable, and operating under long-term contracts, making it a complementary addition to ADNOC Drilling's portfolio, focused on expansion that drives performance, returns, and growth.
The partnership will allow ADNOC Drilling immediate access to earnings, cash flow, and returns through two operating land drilling rigs in Kuwait and six in Oman, thus accelerating its expansion into key GCC geographies. Additionally, the acquisition will enhance the company's capability to deploy advanced technologies, integrated drilling services, digital solutions, and AI-driven efficiencies, which will optimize performance, reduce environmental impact, and add value for customers across the region.
Jesus Lamas, President, Middle East and North Africa, SLB, remarked that the partnership underscores the strong collaboration between SLB and ADNOC Drilling and their commitment to driving value through regional collaboration. He expressed confidence that the partnership would lead to continued growth and outstanding performance, aligning with SLB's regional growth strategy.
The formation of the joint venture and acquisition of the 70% stake, along with the transaction's completion, are subject to customary regulatory approvals, anticipated in the first quarter of 2026. Upon transaction closing, and subject to the final assessment by the company's auditor, ADNOC Drilling expects to fully consolidate the newly acquired business in its financial reporting from 2026.