ADNOC Drilling, a subsidiary of Abu Dhabi's state oil company, is set to acquire eight land rigs from Helmerich & Payne, Inc (H&P), a rig and drilling technologies solutions company, 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, the companies said in a statement on Wednesday.

H&P’s cornerstone investment will be at the IPO price and is subject to a three-year lock-up.

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, the UAE oil producer said.

Earlier this week, ADNOC said it would list 7.5 percent of its drilling subsidiary on the Abu Dhabi Securities Exchange by October, following an IPO.

For the Oklahoma-based H&P, the deal would be a means of expanding into the lucrative energy-rich MENA region. The rigs are expected to be delivered and commissioned in stages over a twelve-month period subject to acceptance upon successful completion of a final inspection on customary terms and conditions.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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