Oil & Gas

Adnoc Drilling plans further acquisitions in US and Europe

February 16, 2025, 6:18 AM

Adnoc Drilling US — Adnoc Drilling's priority will be to strengthen its position in the global oilfield services with 'at least two acquisitions'

Aims to invest $1bn in 2025
Global oilfield services priority
Acquisitions likely via Enersol JV

Adnoc Drilling is looking at more investment opportunities in the US, as President Donald Trump’s “Drill, baby, drill” mantra acts as a catalyst for increased shale oil and gas activity in the world’s biggest energy producer, a top executive told AGBI.

The Abu Dhabi-listed company is planning to invest $1 billion this year, with around $700 million allocated for technology-related US and Europe acquisitions.

The priority will be to strengthen its position in the global oilfield services with “at least two acquisitions,” Adnoc Drilling’s chief financial officer Youssef Salem said on Friday.

“We are focusing on technologies related to the completion side after the well has been drilled,” Salem said. This will allow the execution of oilfield services from start to finish without third parties.

Salem said the acquisitions are likely to be via Adnoc Drilling’s Enersol joint venture with Abu Dhabi holding company Alpha Dhabi.

Salem has seen increased demand for Adnoc Drilling’s oil field services in the US.

Two of the four companies Enersol acquired last year – Gordon and Deep Well Services – were US-based.

“Both of these are now seeing increased activity levels on the back of this (new Trump policy),” Salem said.

In the Gulf region Adnoc Drilling operates in Jordan and Saudi Arabia and plans to expand to Oman and Kuwait, including potential acquisitions of drilling assets for which it has allocated between $200 million and 300 million.

“It’s all about the best way to land contracts in the most creative way,” said Salem. “Either we win contracts organically, and then we acquire standalone rigs and put them into operation, or we acquire local drilling assets or companies with contracts ready to operate.”

While Kuwait plans to boost its production capacity to 4 million barrels per day, Oman needs to maintain its capacity – “hence, we focus on these countries,” Salem said.

At the end of 2024 Adnoc Drilling had 142 owned rigs. By 2028, the company plans to expand its rig fleet to more than 150.

Adnoc Drilling, which posted its financial results yesterday, is looking to refinance debt maturing later this year worth an overall $1.25 billion.

Salem said the company will refinance a term loan worth $500 million and a revolving facility for $750 million, maturing in October 2025.