ADNOC Drilling Company has sealed a lucrative deal worth a staggering $220 million to acquire two top-tier offshore jack-up rigs.
According to a press statement, the rigs are expected to be delivered to Abu Dhabi waters and commence operations in the fourth quarter (Q4) of 2023.
The revenue generated from the new rigs will be recorded starting in 2024, while capital expenditure for this monumental deal is in line with ADNOC Drilling’s strategic growth plans.
The premium jack-up rigs will serve ADNOC Offshore’s drilling and completion services requirements, allowing for accelerated production capacity.
With this transaction, the UAE-based company is set to nearly double its offshore jack-up rig fleet, solidifying its industry-leading position. The expansion is projected to continue throughout 2024, propelling ADNOC Drilling to new heights.
Since its listing on the Abu Dhabi Securities Exchange (ADX) in October 2021, ADNOC Drilling has been on an impressive growth trajectory, expanding its fleet from 95 to 115 owned rigs as of March 31, 2023.
In the first quarter (Q1) of 2023, ADNOC Drilling reported net profits of $218.68 million, marking a remarkable 25% annual increase from $174.45 million, demonstrating the company’s resilience and financial prowess.
“This acquisition is the next step in executing our strategy to rapidly expand our business, drive substantial revenue growth, and maximise shareholder returns,” said Abdulrahman Abdulla Al Seiari, the CEO of ADNOC Drilling.
“ADNOC Drilling’s ambition is to grow its overall fleet to a staggering 142 owned rigs by 2024, cementing its status as one of the largest offshore jack-up rig fleet owners globally.”
The company announced a groundbreaking $75 million deal in May to acquire six hybrid power land rigs, reinforcing its medium-term vision.