meed-logo

line1 line2 line3
SIGN IN / REGISTER

Adnoc Drilling wins $1.63bn contract from Adnoc Offshore

17 April 2025

Register for MEED’s 14-day trial access 

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

https://image.digitalinsightresearch.in/uploads/NewsArticle/13712882/main3407.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Sports Boulevard tenders Wadi Hanifa road works

    23 April 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Sports Boulevard Foundation has issued a tender inviting firms to bid for a contract to build a road and associated infrastructure in the Wadi Hanifa area of Riyadh.

    The bid submission deadline is 27 April.

    The scope includes construction of an 11.4-kilometre road and associated infrastructure, including public realm works, utilities and security systems.

    The scheme is the latest package to progress on Riyadh’s Sports Boulevard project.

    The Sports Boulevard Foundation is also evaluating bids for its Global Sports Tower in the development’s Athletics District.

    The 130-metre-tall Global Sports Tower will have a gross floor area of 84,000 square metres (sq m) and will include more than 30 sports facilities. The tower will feature what is billed as the world’s tallest indoor climbing wall, at 98 metres, and a 250-metre running track.

    Sports Boulevard will run across Riyadh from east to west. Once complete, it is intended to be the world’s longest park, stretching more than 135 kilometres.

    The project is divided into multiple districts, including the Wadi Hanifah, Arts, Urban Wadi, Entertainment, Athletics and Eco districts, as well as Sands Sports Park.

    The large-scale development aims to transform central Riyadh – currently dominated by major highways – into a recreational corridor.

    Sports Boulevard will include 4.4 million sq m of public realm and landmark buildings. Along with the Global Sports Tower, there will be a Centre for Cinematic Arts and a 2,000-seat amphitheatre.

    It will also deliver more than 2.3 million sq m of mixed-use commercial, residential and retail space, alongside sports facilities, around the park, known as the Linear Park.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16534345/main.jpg
    Yasir Iqbal
  • Masdar to develop renewables projects in Montenegro

    23 April 2026

    Abu Dhabi Future Energy Company (Masdar) and Elektroprivreda Crne Gore (EPCG) have agreed to establish a 50:50 joint venture to develop and operate renewable energy projects in Montenegro.

    The planned projects include solar photovoltaic (PV), wind, hydropower, pumped-hydro storage and battery energy storage systems.

    The joint venture will be headquartered in Niksic in western Montenegro and is intended to support Montenegro’s domestic energy needs while also enabling the export of renewable electricity to the Western Balkans and Southern Europe, Masdar said in a statement.

    The companies plan to leverage an existing sub-sea interconnection with Italy. Montenegro is connected to Italy via a 600MW HVDC submarine cable, enabling electricity exports to the Italian market.

    Masdar has an existing presence in Montenegro through its investment in the 72MW Krnovo wind farm.

    The developer has recently accelerated foreign investment plans as part of its broader expansion. In April, it signed a binding agreement with France’s TotalEnergies to establish a $2.2bn joint venture to develop, build and operate renewable energy projects across Asia.

    The combined business will have 3GW of operational capacity and 6GW of projects in advanced development, targeted for commissioning by 2030.

    Masdar is targeting a global renewable energy portfolio of 100GW by 2030. It recently reached 65GW, two-thirds of the way to that target.

    The company plans to deploy an additional $30bn-$35bn in equity and project finance by 2030, adding an average of 10GW of new capacity each year.

    This expansion will be funded through a mix of equity, green bonds and long-term project financing.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16534112/main.jpg
    Mark Dowdall
  • Qiddiya sets new deadline for infrastructure package

    23 April 2026

     

    Saudi gigaproject developer Qiddiya Investment Company (QIC) has set a 13 May deadline for bids for a contract covering new infrastructure works at Qiddiya Entertainment City.

    The scope comprises two infrastructure development packages for District 0 of Qiddiya Entertainment City, including the construction of four event park-and-ride facilities.

    The tender was issued on 11 March, with an initial bid submission deadline of 22 April.

    Lebanese firm Dar Al-Handasah and Saudi-based Sets International are serving as project consultants.

    QIC is accelerating plans to develop additional assets at Qiddiya City. Earlier this month, the company received prequalification statements from firms for the engineering, procurement, construction and finance package for the Qiddiya high-speed rail project.

    MEED has also reported that QIC received bids from contractors on 23 February for a SR980m ($261m) contract covering the construction of staff accommodation at Qiddiya Entertainment City.

    The project will cover an area of more than 105,000 square metres (sq m).

    Also in February, QIC started the main construction works on its performing arts centre at the entertainment hub.

    The Qiddiya City performing arts centre is one of several major projects within the greater Qiddiya development. Other projects include an e-games arena, Prince Mohammed Bin Salman Stadium, a motorsports track, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    QIC officially opened the Six Flags theme park to the public in December last year.

    The park covers 320,000 sq m and features 28 rides and attractions, including 10 thrill rides and 18 aimed at families and young children.

    The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to UK analytics firm GlobalData, leisure tourism in Saudi Arabia has experienced significant growth in recent years.

    Saudi Arabia’s tourism sector posted record figures last year, with more than 130 million domestic and international visitors – a 6% increase on 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16533776/main.jpg
    Yasir Iqbal
  • Detailed design progressing for major Iraqi oil project

    23 April 2026

     

    Detailed design work is progressing on Iraq’s 950-kilometre seawater pipeline network under the Common Seawater Supply Project (CSSP), according to industry sources.

    They added that on-site construction would begin only after the detailed design is complete.

    Iraq’s state-owned Basra Oil Company (BOC) and China Petroleum Pipeline Engineering (CPP) signed a $2.5bn contract for the pipeline package in September last year.

    The project is being supervised by Austria’s ILF Consulting Engineers.

    The pipeline package is one of two main CSSP packages.

    The second focuses on a seawater treatment facility, expected to have a capacity of 5 million barrels a day (b/d), potentially rising to 7-8 million b/d in later phases.

    Processed water will be injected into some of Iraq’s largest oil fields – Rumaila, Zubair, West Qurna 1, West Qurna 2 and Majnoon – and also used in the Maysan and Dhi Qar fields.

    Iraq’s Oil Ministry said the injected water will help maintain reservoir pressure and sustain crude production.

    CPP is a subsidiary of state-owned China National Petroleum Corporation.

    TotalEnergies is responsible for the CSSP as part of the larger $27bn Gas Growth Integrated Project.

    Iraq approved a $2.45bn contract with South Korea’s Hyundai Engineering & Construction (Hyundai E&C) in August last year for the engineering, procurement and construction of the seawater treatment plant.

    Over recent weeks, Iraq’s oil exports have collapsed by about 80% due to fallout from the US and Israel’s war with Iran.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16527404/main.jpg
    Wil Crisp
  • Libya brings gas pipeline online

    23 April 2026

    Libya’s state-owned National Oil Corporation (NOC) has brought a gas pipeline online that will allow it to reduce flaring and increase production, according to a statement issued by the company.

    The 42-inch pipeline, which connects the Al-Intisar field and the Brega gas distribution system, has entered the “experimental operation” stage, according to NOC.

    This follows the completion of connection works.

    The pipeline is expected to allow the collection of 150 million standard cubic feet a day of gas, which was previously flared at the oil and gas field.

    The pipeline is expected to debottleneck hydrocarbon flows at the oil and gas field and increase production levels.

    Prior to the pipeline recently being brought online, completion of the project had stalled for 16 years.

    Stakeholders are expecting a surge in oil and gas project activity in Libya after the country’s rival legislative bodies recently approved a unified state budget for the first time in more than 13 years.

    The Central Bank of Libya confirmed on 11 April that both chambers had endorsed the budget, saying that it was a key step towards restoring financial stability after prolonged division.

    The budget is valued at LD190bn ($29.95bn), and LD12bn ($1.9bn) has been allocated to the NOC.

    An additional LD40bn ($6.3bn) has been allocated for “development projects”.

    Libya has stated that a joint committee has been formed to help prioritise development projects, and the projects have been listed in the budget.

    The development comes at a time when Libya’s oil and gas sector could be positioned to make windfall revenues as oil and gas prices remain high due to fallout from the US and Israel’s war with Iran.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16527327/main.jpg
    Wil Crisp