ADNOC to acquire eight FlexRig® land rigs for $86.5 million
Abu Dhabi National Oil Company (ADNOC) and its subsidiary ADNOC Drilling Company and Helmerich & Payne, Inc., a global leader in rig technologies and drilling solutions, jointly announced today a strategic alliance, that will see ADNOC Drilling acquire eight FlexRig® land rigs from H&P for $86.5 million. Following this transaction, H&P will make a $100 million cornerstone investment into ADNOC Drilling’s recently announced Initial Public Offering (“IPO”).
The strategic alliance and rig acquisition will support ADNOC’s target of reaching 5 million barrels per day (mbpd) production capacity and gas self-sufficiency for the UAE by 2030, along with plans to unlock its unconventional oil and gas resources.
These agreements will further drive ADNOC Drilling’s growth and expansion as well as enhance its rig-based operational performance by providing access to the world-class H&P FlexRig® land rig fleet and leveraging H&P’s expertise and technologies. In addition, the alliance will support ADNOC Drilling in further driving operational excellence through maintenance efficiencies, supplementing supply-chain capabilities, and adding engineering and rig design competencies. The alliance will also deliver more competitive well completion times, greater drilling efficiencies and improved well economics.
For H&P, these agreements help facilitate its goal of allocating capital internationally, particularly in the MENA region, by accelerating its access into the attractive and fast-growing Abu Dhabi market as a key platform for further regional expansion. H&P’s cornerstone investment in the upcoming ADNOC Drilling IPO also highlights its confidence in the attractiveness and long-term value creation potential of ADNOC’s unique energy assets to leading international market participants.
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