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Abu Dhabi / WAM
The Abu Dhabi National Oil Company (Adnoc), and Baker Hughes, a General Electric company, on Monday signed a strategic partnership agreement that will enable and support the growth and development of Adnoc’s subsidiary, Adnoc Drilling, into a fully integrated drilling and well construction provider.
As part of the agreement, BHGE will acquire a five percent stake in Adnoc Drilling for $550mn. The transaction values Adnoc Drilling at approximately $11 billion. BHGE will be the sole provider of certain proprietary leading-edge and differentiated equipment and technologies related to the integrated drilling offering, supporting Adnoc Dril-ling’s growth. Together, Adnoc and BHGE will deliver more competitive well completion times, greater drilling efficiencies and better well economics, and will capitalise on new business opportunities as Adnoc Drilling grows through its new expanded offering.
The partnership represents the first time that Adnoc has brought an international strategic partner to acquire a direct equity stake in one of its existing services businesses. Adnoc Drilling is the largest drilling company in the Middle East and the sole provider of drilling rigs and associated services to Adnoc Group Companies. Adnoc Drilling also possesses decades of market experience and detailed knowledge of the UAE’s subsurface, enabling reduced risk in drilling activities. With more than 40 years of operations in the country, BHGE has deep domain expertise and a proven track record of solving complex drilling challenges through innovative technical solutions.