ADNOC Drilling, a subsidiary of the state-owned Abu Dhabi National Oil Company (ADNOC), has forecast an 18% annual growth rate in the medium term as it continues its strategic international expansion. The Abu Dhabi-listed company is allocating $1.5 billion for acquisitions over 2024 and 2025 through its joint venture, Enersol.
Youssef Salem, Chief Financial Officer at ADNOC Drilling, highlighted that the company completed four transactions under Enersol in 2024, utilizing half of the budget. A similar scale of transactions is planned for 2025. Salem emphasized that the projected 18% growth is based on contracted operations and does not factor in additional growth driven by technology-enabled solutions under Enersol.
Strengthening Global Operations
ADNOC Drilling is leveraging its joint ventures to unlock unconventional resource opportunities in the Middle East. Through Turnwell Industries, a partnership with US-based Patterson UTI, the company is expanding into unconventional resources—a departure from the region’s traditional reliance on conventional assets.
The company has already commenced live drilling operations in Jordan and pre-qualified in Kuwait and Oman. These markets represent significant growth opportunities, particularly Oman and Kuwait, where the market for land rigs is approximately three times larger than that of Abu Dhabi.
Financial Milestones and Future Plans
ADNOC Drilling reported significant financial achievements in 2024, with annual net income growing from $600 million to $1.3 billion. Additionally, the company plans to distribute $5 billion in dividends over the next five years, equivalent to 20% of its market capitalization.
Looking ahead, ADNOC Drilling will refinance $2 billion in term debt by the fourth quarter of 2025, collaborating with a global syndicate of lenders from Europe, the US, Japan, the Middle East, and China. This underscores ADNOC Drilling’s robust financial strategy and international outreach.
