ADNOC Drilling has entered into an agreement to acquire a 70% stake in SLB’s land drilling rigs business in Kuwait and Oman for $112 million. The joint venture encompasses eight fully operational land rigs—two in Kuwait and six in Oman—currently under contract with the respective national oil companies.
The transaction, pending customary regulatory approvals, is anticipated to close in the first quarter of 2026. ADNOC Drilling plans to fund the acquisition through its existing debt capacity and expects to consolidate the newly acquired business into its financial reporting from 2026.
Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, described the acquisition as a strategic expansion beyond the company’s traditional operations. He emphasized that the partnership with SLB provides a solid operational and financial platform to further expand in the region, noting that the business is well-established, profitable, and operating with long-term contracts.
The acquisition aligns with ADNOC Drilling’s broader strategy to enhance its presence in the Gulf Cooperation Council region. The company currently owns 57 rigs in Abu Dhabi and plans to increase its fleet to 62 by the end of 2025. The addition of the eight rigs from the joint venture will accelerate this expansion, providing immediate access to earnings and cash flow.
The partnership also aims to leverage advanced technologies, integrated drilling services, digital solutions, and AI-driven efficiencies to optimize performance and reduce environmental impact. Jesus Lamas, President of Middle East and North Africa at SLB, highlighted the collaboration’s potential to drive value across the region, expressing confidence in the joint venture’s ability to deliver outstanding performance for customers.
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