Adnoc Drilling and Alpha Dhabi partner to invest $1.5bn in oilfield and energy firms

Adnoc Drilling will own 51% of the joint venture with Alpha Dhabi holding 49%

Hamad Al Ameri, left, group chief executive of Alpha Dhabi, and Abdulrahman Al Seiari, chief executive of Adnoc Drilling, right sign the pact, in the presence of Abdulmunim Al Kindy, Adnoc executive dShow more

Adnoc Drilling and Alpha Dhabi Holding, a unit of Abu Dhabi's International Holding Company, have set up a joint venture that aims to invest up to $1.5 billion to acquire technology-enabled companies in the oilfield services and energy sectors.

Adnoc Drilling will own 51 per cent of the venture with Alpha Dhabi will hold the remaining stake.

Abu Dhabi-based Lunate Capital Limited, which is licensed and regulated by the Abu Dhabi Global Market Financial Services Regulatory Authority, will provide asset management support to the joint venture.

The new entity aims to invest in “value-accretive businesses” globally across the oilfield services and energy value chain, the organisations said.

It will invest in “innovative technology, enhancing our services, while adding depth to our offering and further expanding our business”, Abdulrahman Al Seiari, chief executive of Adnoc Drilling, said.

Adnoc Drilling, which aims to reach 142 rigs by the end of next year, is looking to expand its operations beyond Abu Dhabi to enter Saudi Arabia, Kuwait and Oman, Mr Al Seiari told The National in August.

“Pooling our collective expertise, we are poised to unlock new opportunities, delivering sustainable value to our stakeholders,” Hamad Al Ameri, managing director and group chief executive of Alpha Dhabi, said.

“Diversification and innovation are critical pillars in today's dynamic global economy. This partnership not only underscores our dedication to these principles but also positions us to significantly boost the UAE's domestic growth, laying the foundation for sustained national prosperity.”

Alpha Dhabi, which was previously known as Trojan Holding, has grown into a regional conglomerate with interests in construction, health care, hospitality and industry after completing a series of acquisitions in 2021 and 2022.

It reported a 93 per cent surge in its third-half profit as revenue jumped amid a wave of new investments and acquisitions.

Net profit attributable to owners of the company for the quarter ended in September climbed to Dh877.66 million ($238.95 million), while revenue during the quarter jumped 8.1 per cent annually to Dh10.27 billion.