Adnoc Drilling has signed a sale and purchase agreement to buy two more premium jack-up rigs, for $140 million.
The two new rigs are due to begin operations for the company by the end of 2022. Adnoc Drilling did not disclose the seller of the rigs.
The deal follows its acquisition of two rigs in May, one in June and another in August. Adnoc Drilling said the move was in line with its “accelerated fleet expansion and enterprising growth”. The price paid, around $70mn per rig, is in line with the August deal.
“Adnoc Drilling takes another exciting step in executing our accelerated growth strategy as a key enabler of Adnoc’s production capacity,” said Adnoc Drilling CEO Abdulrahman Abdullah Al Seiari.
“The acquisition of these new jackup rigs consolidates our position as the owner of one of the largest operating jack-up fleets in the world and will significantly boost company revenues, cash flow and shareholder returns over the coming years.”
When Adnoc Drilling listed on the Abu Dhabi exchange in October 2021, it had 96 rigs. It increased this to 104 in March and then 105 as of the end of July.
This recent deal gives the company “one of the largest operating fleets” of jack-ups in the world, at 32 rigs. It plans to keep on growing its fleet. It has said it intends to reach a fleet of 122 rigs by the end of 2024.
Adnoc Drilling noted that its results were also improving. In the first half of the year, it recorded revenue of $1.27 billion, up 13%. Net income reached $379 million, up 34%.
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