ADNOC Drilling has agreed to acquire a 70% stake in SLB’s land drilling rigs business in Kuwait and Oman, the companies announced on Thursday.
The joint venture deal comprises two rigs in Kuwait and six in Oman, all currently under contract with the Kuwaiti and Omani NOCs. ANDOC Drilling will pay USD 91 million for the 70% stake, plus an additional potential payment of USD 21 million based on rig performance, Reuters reported.
The transaction establishes the first drilling operations for ADNOC Drilling outside the UAE, apart from a single rig in Jordan, according to Reuters. Since the rigs are operational, they will immediately yield cashflow and returns, ADNOC Drilling noted.
“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. This business is well-established, profitable and operating with long-term contracts, making it a highly complementary and value-accretive addition to our portfolio,” said ADNOC Drilling CEO Abdulrahman Abdulla Al Seiari.
SLB executive Jesus Lamas, president for the Middle East and North Africa, added: “We are confident that, working together with ADNOC Drilling, the business will continue to grow and deliver outstanding performance for our customers.”
The transaction is subject to regulatory approvals and is expected to close in Q1 2026, and ADNOC Drilling will fully consolidate the business into its financial reporting in the same year.