Adnoc Drilling Seeks To Buy Firms That Operate In Kuwait, Oman

11/4/2024 7:01:21 PM

(MENAFN- Live Mint) (Bloomberg) -- The drilling unit of Abu Dhabi's main oil company is looking to buy companies with operations in Kuwait and Oman as it looks to expand beyond its core operations in the United Arab Emirates.

Adnoc Drilling Co. wants to focus its expansion plans on the Middle East for its growth potential and isn't looking for deals outside the region, Chief financial Officer Youssef Salem said in an interview on the sidelines of the Adipec summit in Abu Dhabi. The company currently drills mostly for its parent company Abu Dhabi National Oil Co.

Adnoc Drilling and Alpha Dhabi Holding PJSC's joint venture company Enersol on Monday announced the purchase of a 95% stake in Deep Well Services for about $223 million. Enersol has announced four acquisitions this year for a total value of $800 million, has cash to do $700 million of additional deals next year and can borrow another $500 million for acquisitions in 2025 or 2026, Salem said.

Adnoc Drilling had been wanting to venture out since its 2021 IPO but expedited expansion plans of its parent company meant all its rigs had to go to sites in Abu Dhabi, Salem said earlier this year. By the end of this year, the company will have enough rigs to deploy outside of the UAE, he said at the time.

Adnoc Drilling's shares have increased 35% this year. Adnoc raised $935 million in May selling additional stock in the company that increased the free float to more than 16%.

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