UAE - Mubasher: The Abu Dhabi National Oil Company (ADNOC), ADNOC Drilling Company (ADNOC Drilling), and Helmerich & Payne (H&P) have formed a strategic alliance, under which ADNOC Drilling will acquire eight FlexRig® land rigs from H&P in exchange for $86.5 million.
Following this transaction, H&P will invest $100 million into ADNOC Drilling’s recently announced Initial Public Offering (IPO), according to a press release on Wednesday.
The alliance is in line with ADNOC's objective to record 5 million barrels per day (mbpd) production capacity and achieve gas self-sufficiency for the UAE by 2030.
The alliance will also enable ADNOC Drilling to raise maintenance efficiencies, supplement supply-chain capabilities, and add engineering and rig design competencies.
Meanwhile, the agreement will support H&P to allocate capital internationally and further expand, namely in the MENA region, by accelerating its access into the Abu Dhabi market.
The UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, Sultan Ahmed Al Jaber, said: "This exciting alliance and value creation opportunity will provide ADNOC Drilling with access to new world-class rigs and services, enabling it to continue to support ADNOC in our ambitious production capacity expansion plans."
Meanwhile, H&P’s President and CEO, John Lindsay, commented: "Our investment in ADNOC Drilling is an additional step in the execution of our international growth strategy to allocate additional capital outside the US and serves as a testament of our belief in what ADNOC Drilling and H&P can achieve together."
It is noteworthy to mention that on 6 September 2021, ADNOC announced its plan to float a 7.5% minority stake of the subsidiary ADNOC Drilling on the Abu Dhabi Securities Exchange (ADX) in an IPO.
