Abu Dhabi’s ADNOC Drilling acquires offshore jack-up rig for $70m

Abu Dhabi-based ADNOC Drilling Company has announced that it has signed a sale and purchase agreement to acquire a premium offshore jack-up drilling unit (rig) for $70m.

The cost of the acquisition is part of the “company’s three-year guidance on capital expenditure and strategic plans to expand its existing business”, it said in a statement.

The sale and purchase agreement is the third signed by ADNOC Drilling in recent months – an agreement for two premium drilling units was signed on May 30, and another for one premium drilling unit penned on June 10.

All four premium offshore drilling units are expected to join the company’s fleet by year-end, bringing its total offshore jack-up fleet to 28 operational units.

Abdulrahman Abdullah Al Seiari, chief executive officer of ADNOC Drilling, commented: “The acquisition of this additional premium drilling unit is central to our bold growth strategy and the rig will support us in delivering on our commitments to shareholders.”

ADNOC Drilling Company was listed on the Abu Dhabi Securities Exchange (ADX) in October of last year. Following its IPO, the company reported a net profit of $604m for 2021.

Read: ADNOC Drilling lists IPO on Abu Dhabi Securities Exchange

In the first half of 2022, ADNOC Drilling recorded revenues of $1.27bn, posting a 13 per cent increase year-on-year, while its net income soared 13 per cent to equal $379m.

Meanwhile, the company was awarded two contracts totalling over $3.4bn to hire eight jack-up offshore rigs, it announced earlier this month.

Read more: Contracts worth over Dhs12.6bn awarded to ADNOC Drilling to expand offshore drilling activities

ADNOC also recently awarded ADNOC Drilling two contracts totalling $2bn for integrated drilling services and the provision of island drilling units at its Hail and Ghasha Gas Development Project.

Read: ADNOC Drilling confirms $2bn contract award for Ghasha mega project