Adnoc Drilling to buy 70% stake in SLB Kuwait, Oman rigs unit

30/05/2025 02:22 AST

Adnoc Drilling Company announced today that it has signed an agreement to acquire a 70% stake in SLB's land drilling rigs business in Kuwait and Oman, comprising eight fully operational land rigs under contract with the respective national oil companies (NOCs) of both countries.

Abdulrahman Abdulla Al Seiari, Adnoc Drilling CEO, said: "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 business is well-established, profitable and operating with long-term contracts, making this a highly complementary and value-accretive addition to our portfolio. Our focus is on disciplined expansion that drives performance, returns and growth."

Through this partnership, Adnoc Drilling will gain immediate access to earnings, cashflow and returns through two operating land drilling rigs in Kuwait and six in Oman, accelerating its expansion into key GCC geographies. This acquisition will enhance the company's ability to deploy cutting-edge technologies, integrated drilling services, digital solutions and AI-driven efficiencies - optimising performance, reducing environmental impact and driving value for customers across the region.

Jesus Lamas, President, Middle East and North Africa, SLB, said: "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."

The formation of the joint venture (JV) and the acquisition of a 70% stake, along with the completion of this transaction are subject to necessary and customary regulatory approvals, expected in Q1 2026. Upon closing, and subject to final assessment by the company's auditor, Adnoc Drilling expects to fully consolidate the newly acquired business in its financial reporting from 2026.

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