ADNOC Drilling accelerates growth with 2 new rigs acquisition

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Abu Dhabi – ADNOC Drilling Company inked an agreement to purchase two premium offshore jack-up rigs for $220 million, which is included in its capital expenditure guidance.

The rigs will be delivered into Abu Dhabi waters and commence operating during the fourth quarter (Q4) of 2023, with revenue contribution will be registered in 2024, according to a press release.

The acquisition comes within the framework of ADNOC Drilling’s fleet expansion and growth strategy to meet the increasing global energy demand.

Through the transaction, the UAE-based company will almost double its offshore jack-up rig fleet since early 2021, as the expansion is forecast to continue until the end of 2024.

Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, commented: “The acquisition of these premium jack-up rigs will support one of our major customers, ADNOC Offshore, with its drilling and completion services requirements, as it delivers accelerated production capacity.”

“It is the next step in the execution of our strategy to rapidly grow our business, significantly boost revenue, and increase shareholder returns,” Al Seiari added.

The CEO highlighted: “These rigs further cement our position as one of the world’s largest offshore jack-up rig fleet owners and support our plan to grow our overall fleet to 142 owned rigs by 2024.”

Since listing on the Abu Dhabi Securities Exchange (ADX) in October 2021, ADNOC Drilling rapidly enlarged its fleet from 95 to 115 owned rigs as of 31 March 2023.

Last May, the group announced a $75 million deal to acquire six hybrid power land rigs as a part of the medium-term guidance.

In the first quarter (Q1) of 2023, the company's net profits amounted to $218.68 million, an annual rise of 25% from $174.45 million.