Adnoc Drilling buys offshore jack-up rig for $70m to expand drilling fleet

It is the fourth premium offshore jack-up rig the company has bought since May

Adnoc drilling acquires an additional premium jack-up rig, fortifying a strong growth trajectory. Photo: Adnoc

Adnoc Drilling, the largest national drilling company in the Middle East by rig fleet size, has announced the purchase of a premium offshore jack-up drilling unit for $70 million as it expands and helps parent company Adnoc to boost its crude oil production capacity.

The cost of the acquisition is part of the company’s three-year guidance on capital expenditure and strategic plans to expand its existing business, Adnoc Drilling said in a statement on Wednesday.

“The acquisition of this additional premium drilling unit is central to our bold growth strategy and the rig will support us in delivering on our commitments to shareholders,” said Abdulrahman Al Seiari, chief executive of Adnoc Drilling.

The purchase marks the fourth premium offshore jack-up rig the company has bought in less than three months, having bought two on May 30 and another on June 10.

All four premium offshore drilling units are expected to join the company’s fleet by year-end, bringing Adnoc Drilling’s total offshore jack-up fleet to 28 operational units, one of the largest operating fleets in the world.

“Over the past 50 years, Adnoc Drilling has grown in size, stature and capability." Mr Al Seiari said.

After its initial public offering in last October, Adnoc Drilling has demonstrated strong growth.

In the first half of 2022, the company reported a revenue of $1.27 billion, a 13 per cent annual increase, with $379m in net income — a 34 per cent jump.

Adnoc Drilling plays a vital role in Abu Dhabi state oil company Adnoc's efforts to boost its hydrocarbon production capacity.

The company was this month awarded two contracts worth more than $3.4bn to its drilling unit. Valued at $1.5bn and $1.9bn, respectively, they were awarded by Adnoc Offshore.

The company was last month awarded two contracts worth $2bn linked to Adnoc's Hail and Ghasha development project.