ADNOC Drilling to Buy Stake in MB Petroleum Services, Further Expanding in the Gulf
November 5, 2025
ADNOC Drilling said on Wednesday it would buy an 80% stake in regional drilling and oilfield services provider MB Petroleum Services for an enterprise value of $204 million (749 million dirhams), marking a further expansion in the Gulf.
The deal is ADNOC Drilling's second major regional acquisition after it bought into SLB's onshore rig business in Oman and Kuwait.
ADNOC Drilling’s Chief Financial Officer Youssef Salem told Reuters such deals were a "blueprint" for further growth.
The stake in MBPS will increase ADNOC Drilling's footprint in Oman, Kuwait, Saudi Arabia and Bahrain.
The acquisition will add 21 rigs — 13 in Oman, four in Kuwait, and four in Bahrain — and is expected to boost earnings, cash flow and returns.
The rigs are operational and have a $270 million backlog, significantly exceeding the acquisition cost, Salem said. The rigs operate under long-term contracts that extend as far as 2033.
"From an oil price perspective, there is pressure," but underlying drilling activity in the UAE, Oman and Kuwait is at an all-time high and Saudi Arabia is "on the recovery," Salem said during an interview on the sidelines of the ADIPEC conference in Abu Dhabi.
The deal was valued at less than four times core earnings (EBITDA), with a free cash flow yield of over 10% and an internal rate of return above 15%, Salem added.
The transaction is expected to close in the first half of 2026, subject to regulatory approvals.
(Reuters)
