ADNOC Drilling JV to acquire 95% stake in Deep Well Services for $223m

Enersol, a joint venture between ADNOC Drilling and Alpha Dhabi Holding, has agreed to acquire a 95 per cent stake in US-based Deep Well Services (DWS) for approximately $223m.

The deal is Enersol’s fourth acquisition this year for a total value of $800m; it has the cash to do $700m of additional deals next year and can borrow another $500m for acquisitions in 2025 or 2026, the company’s chief financial officer Youssef Salem told Bloomberg on the sidelines of the ADIPEC summit in Abu Dhabi.

The transaction, subject to regulatory approvals, would be on a cash-free, and debt-free, excluding transaction fees and expenses.

Founded in 2008, DWS specialises in several advanced technologies and services within the energy sector.

“The acquisition serves as an additional marker in building Enersol’s next-gen technology portfolio, which will present the JV with an additional avenue for growth across untapped markets as well as further upside potential in the long term,” ADNOC Drilling and Alpha Dhabi Holding said in a joint statement.

Meanwhile, Abu Dhabi-based Enersol is advancing plans to acquire and invest in multiple businesses. It aims to build a scalable ecosystem that will enhance market value and establish the JV as a technology-centric investment platform in the energy sector.

The venture acquired EV Holdings from UK-based private equity firm Dunedin for approximately $45m in August. It also agreed to acquire 51 per cent of NTS Amega (NTS), a manufacturer of advanced precision equipment and solutions provider for the energy sector, subject to regulatory approvals.

Enersol agreed to acquire an additional 42.21 per cent equity stake in Gordon Technologies for approximately $270m in June, making the venture the majority equity holder in the drilling technology provider.

Alpha Dhabi and ADNOC Drilling established a strategic partnership last November to invest up to $1.5bn in acquiring technology-enabled companies in energy and oilfield services. ADNOC Drilling is well-positioned to benefit from Enersol’s AI, digitisation, and advanced technology acquisitions.

Enersol companies are expected to support the delivery of ADNOC Drilling’s recent $1.7bn contract award to deliver 144 unconventional wells to ADNOC Group.

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