By: Oil and gas Middle east

ADNOC Drilling Company completed the acquisition of a 70% stake in SLB’s land drilling rigs business in Kuwait and Oman, marking a significant step in the company’s regional expansion strategy.

The deal, initially announced on May 29, 2025, covers eight fully operational land drilling rigs under contract with the national oil companies (NOCs) of both countries. The acquisition was executed through ADH RSC Ltd, a wholly owned subsidiary of ADNOC Drilling, following regulatory approvals.

Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, described the acquisition as “a natural next step in ADNOC Drilling’s growth journey,” reinforcing the company’s position as a leading provider of drilling and integrated services. “This partnership with SLB provides a solid operational and financial platform to expand in the region,” he said. “The business is well-established, profitable, and operating with long-term contracts, making it a highly complementary and value-accretive addition to our portfolio. Our focus remains on disciplined expansion that drives performance, returns, and growth.”

The acquisition grants ADNOC Drilling immediate access to earnings, cash flow, and returns through two operating rigs in Kuwait and six in Oman. It is expected to enhance the company’s capabilities in deploying advanced technologies, integrated drilling services, digital solutions, and AI-driven efficiencies—optimising performance, reducing environmental impact, and generating greater value for customers across the GCC.

Jesus Lamas, President of Middle East and North Africa at SLB, said the partnership “reflects the strong collaboration between SLB and ADNOC Drilling and our shared commitment to driving value through regional collaboration. We look forward to expanding our strategic partnerships with key regional leaders across the energy value chain, in line with SLB’s growth strategy.”

Financially, ADNOC Drilling expects to fully consolidate the newly acquired business in its reporting from 2026, subject to final auditor assessment. The acquisition underscores ADNOC Drilling’s ongoing ambition to strengthen its regional footprint and deliver integrated, technology-driven solutions across key GCC markets.