ADNOC acquires MB Petroleum Services

ADNOC Drilling has finalized its acquisition of an 80% stake in MB Petroleum Services (MBPS), a prominent joint venture in the drilling and oilfield sector, which operates across Oman, Kuwait, Saudi Arabia, and Bahrain. The deal, valued at $204 million, is a strategic step for ADNOC Drilling to enhance its regional presence and capabilities in the Middle East.

This acquisition, executed through a wholly owned subsidiary of ADNOC Drilling, closed sooner than the initially projected mid-year deadline. Under the terms, ADNOC Drilling will integrate MBPS’s assets, which include 22 drilling and workover rigs and production service units. MB Holding Company retains a 20% interest via its subsidiary. The transaction promises to be advantageous for ADNOC Drilling, being earnings, cash flow, and returns accretive, with an anticipated full-year contribution beginning in 2027.

For ADNOC Drilling, this acquisition is a tactical move to augment its rig fleet, boosting its total count to 170. The deal specifically enhances its capacity in its regional joint venture operations, bringing the rig count to 30 in Oman, Kuwait, and Bahrain. This expansion aligns with ADNOC Drilling's growth strategy to consolidate its position in the Gulf's lucrative oil and gas markets.

This transaction comes amid an intensely competitive backdrop where global players like Schlumberger, Baker Hughes, and Halliburton vie for contracts in areas with burgeoning energy demands. ADNOC Drilling’s bolstered rig count positions it advantageously against these rivals, providing it with greater operational leverage and service efficiency in the strategic Gulf region.

Looking forward, ADNOC Drilling will now begin the integration process of MBPS operations into its onshore segment. This integration will be critical, ensuring a seamless transition to capitalize on synergies and increase overall market competitiveness. Monitoring regulatory compliance and operational harmonization will be key as ADNOC Drilling seeks to unlock the full value of this acquisition in the coming years.