Adnoc Drilling has incorporated its investment joint venture on the Abu Dhabi Global Market.
As an initial move, this will hold a 25% stake in Gordon Technologies, a US-based measurement while drilling company. Alpha Dhabi, which has teamed up with Adnoc Drilling on the joint venture, is contributing the 25% stake in Gordon, worth $180 million.
Adnoc Drilling said the venture, and its stake in Gordon, would provide returns to its shareholders and provide synergies to its own business.
Gordon was set up in 2014 and, in 2023, had expected revenues of more than $230mn. Adnoc Drilling said Gordon had a “unique position, particularly in high temperature applications, with reliability measures significantly outperforming the industry average”.
Adnoc Drilling CEO Abdulrahman Abdullah Al Seiari said the joint venture move would accelerate its investments in technology. “Access to these technologies will support us in our operations, and to accelerate well delivery optimization in the development of unconventional resources as we strive to enable gas self-sufficiency for the nation.”
Alpha Dhabi bought its stake in Gordon in 2022, from the management team and Pelican Energy Partners. Alpha Dhabi CEO Hamad Al Ameri said the company had supported its growth plans, including its aims to expand into the Middle East.
“Through this joint venture, and leveraging both Alpha Dhabi and Adnoc Drilling’s complimentary capabilities, we look forward to driving further value creation for the benefit of our mutual stakeholders.”
Tech enabled
Adnoc Drilling and Alpha Dhabi set out their plans for the joint venture in November 2023. The company will acquire and invest in “tech-enabled oilfield services”. It aims to spend $1.5 billion.
A presentation from the company said there was a “strong and growing pipeline” of potential investments for the joint venture. It has more than 10 transactions, it said, worth $1.3bn.
Abu Dhabi’s Department of Economic Development awarded Gordon a commercial licence in December. The company said this was a “significant milestone” marking the start of its expansion in the region.
Adnoc Drilling is no stranger to strategic deals. Baker Hughes owns a 5% stake in the company, while Helmerich and Payne has 1%. As such, they are the second and third largest shareholders in Adnoc Drilling.
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