ADNOC Drilling buys three jack-up rigs for $320m to deliver on growth strategy

ADNOC Drilling Company announced on Monday that it has signed an agreement to acquire an additional three brand new high-specification offshore jack-up drilling units.

The cost of the acquisition was part of the company’s three-year guidance on capital expenditure and its strategic growth plans, ADNOC Drilling said in a statement.

The acquisition underpins the company’s accelerated fleet expansion and enterprising growth strategy. Earlier sale and purchase agreements were signed on 30 May (for two rigs), 10 June (one rig) and 24 August (one rig). The latest three rigs have a combined cost of $320 million and are premium high-specification jack-up rigs.

“We continue to execute our bold growth strategy as a key enabler of ADNOC’s ambitious production capacity targets,”Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, said.

“The latest acquisition of these premium rigs will be central to our success, and cement our position as one of the world’s largest jack-up rig fleet owners, as we strive to significantly boost revenues and shareholder returns over the coming years,” he added in a statement.

As the Company’s new rigs progressively enter the fleet, ADNOC Drilling expects a further boost to its financial and operating performance to the benefit of its clients, shareholders and the UAE, the company said.

Since listing on the Abu Dhabi Securities Exchange in October 2021, ADNOC Drilling has rapidly expanded its fleet from 95 to 108 owned rigs, as of 30 September 2022. With the addition of the latest three high-specification rigs the Company will operate one of the largest offshore jack-up fleets in the world, with 30 rigs, and plans further growth in the short term.

The company continues to demonstrate strong and resilient growth combined with a sustainable and progressive dividend policy. In the nine months to 30 September 2022, the Company delivered revenue of $1.94 billion, a 15% increase year-on-year, with $568 million in net profit – a 24% increase.