Adnoc Drilling is poised for significant expansion through two major acquisitions, which will increase its total fleet from 140 rigs in the UAE to 169 rigs. These deals are central to the company's strategy to broaden its regional footprint and evolve its business model.

Strategic Acquisitions and Regional Expansion

The company has two ongoing multimillion-dollar transactions. The first is an agreement to acquire an 80% stake in MB Petroleum Services (MBPS), a leading regional drilling and oilfield services provider, involving 21 rigs and expected to close by the first half of 2026. The second is a deal to acquire a 70% stake in SLB's land drilling rigs business in Kuwait and Oman, comprising eight operational land rigs, with closure anticipated in the current financial quarter. The total capital expenditure for these two Gulf region acquisitions is up to $250 million.

Enhanced Geographic and Operational Footprint

Upon completion of these deals, Adnoc Drilling's operational presence will extend significantly beyond the UAE. The company will have 29 rigs outside the UAE, with 19 in Oman, 6 in Kuwait, and 4 in Bahrain. It will also hold a substantial services business stake in Saudi Arabia. Combined with the operations of its technology platform subsidiary, Enersol—into which $350 million has been deployed over two years—the company will have operations in 40 countries. In total, Adnoc Drilling has spent approximately $600 million across six acquisitions over roughly the last 18 months.

Business Transformation and Technology Focus

The company is transforming from a drilling contractor into a technology-led, integrated energy solutions provider. This evolution involves serving upstream clients across the entire well value chain and owning critical intellectual property and technologies to enhance efficiency and future-proof the business. Operations are being optimized in areas such as unconventional wells, carbon capture and sequestration pilots, and specialized drilling services.

Market Focus and Growth Drivers

While maintaining a global outlook, Adnoc Drilling's core focus for drilling and oilfield services remains the GCC region, which it views as the most attractive basin due to its low cost per barrel, low emissions, and committed government expansion plans. The UAE market remains its backbone, supporting 140 rigs (92 on land, 48 offshore, including 36 jack-ups and 12 island rigs). Growth is driven by Adnoc's P5 programme to increase oil production capacity to 5 million barrels per day, unconventional programmes, and gas expansion plans. The company drills about 800 wells annually in the UAE, with unconventional drilling set to ramp up from 70 wells per year currently to a target of 300 wells, requiring additional rigs.

Offshore and Fleet Expansion Plans

Offshore expansion is primarily focused on island rigs. The company has at least three additional island rigs arriving later this year, two more next year, one in 2028, and potential new units in 2029 and 2030. When combined with regional expansion and unconventional drilling growth, this represents a sizable potential addition to the overall fleet.