Adnoc Drilling expands regional footprint with major stake in MB Petroleum Services

06/11/2025 01:29 AST

Adnoc Drilling has taken a significant step in its regional growth strategy by announcing the acquisition of an 80 per cent stake in MB Petroleum Services (MBPS), a leading oilfield services provider with operations across the Gulf. The deal, valued at $204 million (Dh749 million), marks the company's second major acquisition in the region and is expected to close in the first half of 2026, pending regulatory approvals.

MBPS operates a fleet of 21 rigs, including 10 land rigs and 11 workover rigs, spread across Oman, Kuwait, Bahrain, and Saudi Arabia. The acquisition is set to bolster Adnoc Drilling's presence in these key Gulf markets, enhancing its operational scale and service capabilities.

"This is a defining moment in Adnoc Drilling's journey," said CEO Abdulla Ateya Al Messabi. "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."

The move aligns with Adnoc Drilling's broader strategy of disciplined, value-driven expansion. The company emphasized that the acquisition is expected to be immediately accretive to earnings, cash flow, and shareholder returns upon completion.

Adnoc Drilling, listed on the Abu Dhabi Securities Exchange, is the largest drilling and integrated drilling services company in the Middle East by fleet size. Since incorporating integrated drilling services (IDS) into its portfolio in 2018, the company has offered end-to-end well delivery solutions, positioning itself as a critical player in Adnoc's upstream operations.

The MBPS acquisition is expected to further strengthen Adnoc Drilling's business model, which is built on operational excellence, integrated services, and a diversified fleet. The company believes the deal will enhance its ability to navigate market cycles and deliver consistent performance in a rapidly evolving energy landscape.

In addition to the rigs, the acquisition includes production service units, prequalifications, and subsidiaries that provide Adnoc Drilling with an established presence and client base across the Gulf Cooperation Council (GCC) region. Notably, MBPS holds contracts with national oil companies in Oman, Kuwait, Saudi Arabia, and Bahrain.

As regional demand for energy services continues to rise, Adnoc Drilling is positioning itself to capture growth opportunities and deliver high-performance solutions. The company reiterated its commitment to capital discipline, stating that every investment must align with its financial framework and deliver sustainable returns.

Khaleej Times