Adnoc Drilling wins $1.63bn contract from Adnoc Offshore

17 April 2025

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Adnoc Drilling has announced that its integrated drilling services unit has secured a contract worth $1.63bn from fellow Abu Dhabi National Oil Company (Adnoc Group) entity, Adnoc Offshore.

The five-year contract covers the provision of directional drilling, drilling fluids, cementing, wireline logging and tubular running, Adnoc Drilling said in a statement on 17 April.

“The award incorporates advanced engineering and technical support for the effective delivery of extended reach and maximum reservoir wells offshore,” Adnoc Drilling said.

“This contract supports the growing oil field services segment, and its economic impact is already included in the current 2025 and 2026 guidance, underpinning the visibility of Adnoc Drilling’s business model and in support of the company’s financial targets,” the Abu Dhabi Securities Exchange-listed company added.

For full-year 2024, Adnoc Drilling announced a net profit $1.3bn, a year-on-year increase of 26%.

The company’s full-year revenue grew 32% year-on-year to $4.03bn. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) also rose 36% year-on-year to $2.01bn.

Additionally, Adnoc Drilling said in its guidance for 2025 that it expects total revenue of $4.6bn-$4.8bn and Ebitda of $2.15bn-$2.3bn, with a margin range of 46%-48%. Net profit is expected to be $1.35-$1.45bn, with a margin range of 28%-30%.

The company expects capital expenditure in 2025 of $350m-$550m and a free cash flow (excluding mergers and acquisitions) of $1.3bn-$1.6bn, while maintaining a conservative leverage target of up to 2.0x net debt/Ebitda.

In 2025, Adnoc Drilling intends to enhance its operational capacity, projecting a rig count of over 148 by 2026 and more than 151 by 2028.

The company revealed it has secured a contract extension in Jordan and achieved prequalification in Kuwait and Oman, “paving the way for further regional expansion in 2025”.

In light of the positive financial results in 2024, Adnoc Drilling approved a cash dividend payment of $394m, bringing total dividends for the year to $788m, representing a 10% year-on-year increase.

Looking ahead, Adnoc Drilling said it seeks to increase dividends to at least $867m for 2025, and reach at least $1.15bn by 2028, based on its minimum 10% year-on-year dividend increase policy.

Growth through acquisitions

Achieving inorganic growth through strategic acquisitions is a key aspect of Adnoc Drilling’s expansion blueprint.

With this in mind, Adnoc Drilling partnered with Abu Dhabi-based Alpha Dhabi Holdings in November 2023 to establish Enersol, which has a mandate to invest up to $1.5bn in acquisitions.

To date, Enersol has announced acquisitions worth approximately $800m to acquire majority stakes in four technology-enabled oil field service companies, and “looking ahead, it aims to solidify its position as an AI [artificial intelligence]-centric investment company”, Adnoc Drilling said.

Enersol completed a transaction it started last July to acquire the majority 51% stake in UAE-based oil and gas services provider NTS Amega. The value of the transaction is estimated to be $58m.

Enersol also closed a transaction with UK-based private equity firm Dunedin to fully acquire US-headquartered EV Holdings. The transaction, started in August, is valued at $45m.

The joint venture then completed a transaction worth $207m to acquire the majority 42.205% stake in US oil and gas drilling services provider Gordon Technologies. Following the completion of the transaction in September, Enersol owns 67.205% of shares in the US firm.

ALSO READ: Abu Dhabi AI firm and SLB sign cooperation agreement

During the last quarter of 2024, Enersol signed an agreement to acquire a 95% equity stake in US-based Deep Well Services for $223m.

Separately, Adnoc Drilling said Turnwell Industries, its joint venture with the Middle East arm of US oil field services provider SLB and US firm Patterson-UTI International Holdings, has made progress with work on a $1.7bn contract awarded by Adnoc Group last May to provide drilling and associated services for the recovery of unconventional oil and gas resources in Abu Dhabi. 

Turnwell has delivered a total of 30 wells to Adnoc to date as part of its scope of work, with the initial wells delivered within 16 days of the contract award.

The broad scope of work on the contract covers drilling and appraisal of a total of 144 unconventional oil and gas wells.

Abu Dhabi is estimated to hold unconventional resources of 220 billion barrels of oil and 460 trillion cubic feet of gas in place.

ALSO READ: Abu Dhabi AI firm and SLB sign cooperation agreement

MEED’s May 2025 report on the UAE includes:

> GOVERNMENT & ECONOMY: UAE looks to economic longevity
> BANKING: UAE banks dig in for new era

> UPSTREAM: Adnoc in cruise control with oil and gas targets
> DOWNSTREAM: Abu Dhabi chemicals sector sees relentless growth
> POWER: AI accelerates UAE power generation projects sector
> CONSTRUCTION: Dubai construction continues to lead region
> TRANSPORT: UAE accelerates its $60bn transport push

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Indrajit Sen
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    China State Construction Engineering Corporation recently signed a contract for Kuwait’s North Kabd wastewater treatment plant, the country’s largest wastewater infrastructure project to date.

    The award, following more than a decade of planning, propelled Kuwait’s water sector contract awards to more than $4bn as of early August, according to regional project tracker MEED Projects.

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    The contract to develop the 1,100MW phase three, zone one solar photovoltaic (PV) project is expected to be confirmed soon, with a consortium led by Abu Dhabi Future Energy Company (Masdar) previously reported to be the frontrunner.

    A separate 500MW solar PV project is also being procured under phase three, zone two of the same programme, with bids submitted on 26 July. If the contract is awarded by the end of the year, the two Shagaya contracts would add about $2bn to the value of power sector awards.  

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    MEED’s September 2026 report on Kuwait also includes:

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    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
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  • Syrian court gives death penalty to Bashar Al-Assad

    11 August 2026

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    A Syrian court has sentenced former president Bashar Al-Assad to death after trying him in absentia, convicting him of crimes committed during the country’s nearly 14 years of civil war.

    It is the first such ruling under Syria’s transitional authorities, who ousted Al-Assad in December 2024 and vowed justice and accountability for crimes committed under his rule.

    Al-Assad fled to Moscow as Islamist-led forces closed in on Damascus after a lightning offensive.

    In a Damascus court, Judge Fakhr Al-Din Al-Aryan convicted Al-Assad of crimes including “premeditated murder, the intentional killing of more than one person, the intentional killing of children under 15 years … torture, torture leading to death, and deprivation of liberty on multiple occasions” — acts the court classified as crimes against humanity and war crimes.

    “He is therefore sentenced to death,” the judge said in his ruling.

    The court also sentenced six former military and security officials to death in absentia, including Al-Assad’s brother Maher, who ran the army’s elite Fourth Division and also fled the country.

    Those convicted included former defence minister Fahd Al-Freij and Louay Al-Ali, who headed military intelligence in Daraa province in 2011.

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    The officials were convicted of crimes including murder, incitement to murder, torture leading to death and repeated deprivation of liberty, also classified as crimes against humanity and war crimes.

    Former security official Atif Najib – the only defendant tried in person – was also sentenced to death for crimes against humanity committed while he headed political security in Daraa province, the cradle of the country’s 2011 uprising.

    Najib, a cousin of Al-Assad who was arrested in January last year, was convicted of crimes including murder, the intentional killing of children under 15 and torture leading to death.

    The acts attributed to him are “crimes against humanity”, the court said as it handed down “the harshest punishment … which is the death penalty”.

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    Syria began proceedings in April against Al-Assad and other officials, accused both in person and in absentia of atrocities during the civil war, which erupted after the former authorities’ brutal repression of pro-democracy protesters.

    More than half a million people were killed and millions displaced, while tens of thousands disappeared, many into the country’s brutal prison system.

    The uprising began in Daraa in March 2011 after 15 students were arrested for allegedly writing anti-government slogans on the city’s walls.

    Residents said the students were tortured, prompting protests demanding their release that ended in bloodshed.

    Security forces suppressed demonstrations and fired live ammunition to disperse sit-ins at several locations.

    Najib was dismissed after the crackdown as protests spread to other provinces.

    Judge Al-Aryan said Najib had denied the charges and shown “no remorse”.

    Al-Assad took power in Syria in 2000 in an unopposed election following the death of his father, Hafez Al-Assad, who was president from 1971.

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    MEED Editorial