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
  • Firms seek to prequalify for Oman waste-to-energy project

    10 November 2025

    Oman’s state offtaker Nama Power & Water Procurement (Nama PWP) has received 18 statements of qualification from international and local companies for the planned waste-to-energy (WTE) project in Barka, South Al-Batinah Governorate.

    The project will be Oman’s first large-scale WTE facility, with a generation capacity of 95MW-100MW.

    According to Nama PWP, the facility will be developed on a 190,000-square-metre site and is scheduled to reach commercial operation in the fourth quarter of 2030.

    US/India-based Synergy Consulting is acting as financial adviser to Nama PWP for the project.

    The plant is expected to contribute 757 gigawatt-hours of renewable energy annually and reduce carbon dioxide emissions by about 302,000 tonnes a year. 

    It will process up to 3,000 tonnes of municipal solid waste a day using grate incineration technology.

    The following companies submitted statements of qualifications:

    • Acwa Power (Saudi Arabia)
    • Al-Ramooz National (Oman)
    • Al-Tasnim Enterprise (Oman)
    • Aspec for Contracting & Environmental Consultancy (Oman)
    • China Communications Construction (China)
    • China Everbright Environment Group (China)
    • China Tianying (China)
    • Eco Vision (Oman)
    • Emirates Waste to Energy (UAE)
    • Eternal Industrial Investment (China)
    • FCC Medioambiente Internacional (Spain)
    • Future Vision Engineering Services (Oman)
    • Horsol Switz Engineering Asia (Singapore)
    • Hunan Junxin (China)
    • Itochu Corporation (Japan)
    • Kanadevia Inova (Switzerland)
    • Keppel Seghers Engineering Co (Singapore)
    • Mohammed Abdulmohsin Al-Kharafi & Sons (Kuwait)
    • NV Besix (Belgium/UAE)
    • Oman National Engineering & Investment (Oman)
    • Paprec Group (France)
    • Satarem America (US)
    • Seven Seas Petroleum (Oman)
    • Shanghai Environment Group (China)
    • Shanghai SUS Environment (China)
    • Shenzhen Energy Group (China)
    • Sinoma Energy Conservation (China)
    • Suez International SAS (France/Oman branch)
    • Veolia Middle East (France)
    • Urbaser (Spain)

    In August, MEED reported that Oman had finally moved to the prequalification phase following attempts to start work on the project to develop a WTE facility for several years.

    In 2019, when it was known as Oman Power & Water Procurement Company, Nama PWP is understood to have started the process to appoint consultants for the project, based on an independent power producer model.

    It later put the project on hold, only to revive the prequalification and procurement process, along with Oman Environmental Services Holding Company (Beah), in 2023.

    Beah will supply the waste feedstock for the project, which is part of a long-term plan to convert municipal waste into energy and reduce landfill dependency, supporting Oman’s net-zero emissions target for 2050.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15058075/main.jpg
    Mark Dowdall
  • WEBINAR: Saudi gigaprojects 2026 and beyond

    7 November 2025

    Webinar: Saudi Gigaprojects 2026 & Beyond
    Tuesday 25 November 2025 | 11:00 GST  |  Register now

    Agenda:

    • Latest update to November 2025 on the gigaprojects programme and the Saudi projects market in general, with full data analysis for 2025 year-to-date
    • Latest assessment on the reprioritisation of the programme and views on which of the gigaprojects are being prioritised
    • Summary of key recent project developments and announcements 
    • Analysis of key contracts awarded this year to date
    • Highlights of key contracts to be tendered and awarded over the next six months
    • Key drivers and challenges going forward plus MEED’s outlook for the future short and long-term prospects of the gigaprojects programme
    • In-depth look at the recently announced King Salman Gate gigaproject and other planned, but unannounced PIF developments
    • Life beyond the gigaprojects – what other key project programmes are being implemented in the kingdom 
    • Q&A session

    Hosted by: Edward James, head of content and analysis at MEED

    A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. 

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15045990/main.gif
    Edward James
  • Bahrain advances utility reform

    7 November 2025

     

    In September, Bahrain’s government referred a draft law to parliament to restructure the kingdom’s electricity and water sector.

    This proposes dissolving the Electricity & Water Authority (Ewa) and transferring its assets and functions to a newly established National Electricity & Water Company, which will operate under the oversight of the Electricity & Water Regulatory Authority. 

    The reform marks the first full structural overhaul of Bahrain’s utilities sector in nearly two decades and signals a shift towards a more commercially driven model. 

    Regulatory and operational roles would be separated for the first time, allowing private sector participation under transparent licensing and tariff systems, aligning Bahrain with utility reforms seen in Saudi Arabia, Oman and the UAE.

    It comes amid a relatively subdued year for new contracts that broadly falls in line with 2024’s performance. Most significantly, Bahrain continues to move towards its two upcoming utility public-private partnership (PPP) schemes, the Sitra independent water and power project (IWPP) and the Al-Hidd independent water project (IWP).

    In August, a developer tender was issued for the main works package for the Sitra IWPP. This followed the prequalification of seven companies and consortiums, reflecting a wide range of international interest.

    The planned Sitra IWPP replaces the previously planned Al-Dur 3 and will be the first IWPP project to be awarded since the 1,500MW Al-Dur 2 IWPP was completed in 2021.

    The combined-cycle gas turbine (CCGT) plant is expected to have a production capacity of about 1,200MW of electricity, while the project’s seawater reverse osmosis (SWRO) desalination unit will have a production capacity of 30 million imperial gallons a day (MIGD) of potable water. The main contract is expected to be awarded by the end of the year, with commercial operations set for 2029. 

    A developer tender was also recently launched for Bahrain’s first independent, standalone SWRO plant following a prequalification process that shortlisted nine companies and consortiums.

    The Al-Hidd IWP is expected to have a production capacity of about 60MIGD of potable water and be completed in 2028. It is likely to be the last IWPP for Bahrain, which aims to reach net-zero carbon emissions by 2060.

    The imminent launch of the two projects boosts Bahrain’s projects pipeline, which has experienced muted growth in the aftermath of the Covid-19 pandemic, carried by relatively small-scale projects.

    Solar PV projects

    The creation of the National Electricity & Water Company as Bahrain’s new operational entity could also support the rollout of future renewable energy schemes. 

    As a corporatised offtaker, the company will be able to enter long-term power purchase agreements (PPAs) with private developers under a more bankable framework. Currently, these are negotiated by Ewa on a case-by-case basis.

    The government recently signed a 123MWp solar PPA with the UAE’s Yellow Door Energy, highlighting growing private sector interest in the market. The project includes the world’s largest single-site rooftop solar installation and will be developed at Foulath Holding’s industrial complex in Salman Industrial City.

    Bahrain has already set a target to source 20% of its energy from renewables by 2035 and reach net-zero emissions by 2060.

    In October, Ewa also issued a tender for the development of the Bilaj Al-Jazayer solar independent power project (IPP). The planned 100MW project will be developed on a build-own-operate basis with a 25-year contract term.

    In parallel, Bahrain is broadening its long-term energy strategy beyond solar. In July, the kingdom signed a cooperation agreement with the US on the peaceful use of nuclear energy, aimed at advancing research and potential deployment of small modular reactor (SMR) technology.

    For countries like Bahrain, which has limited land availability and high energy demand growth, SMRs could offer a way to produce low-carbon, reliable baseload power without requiring vast areas of land for solar or wind farms. 

    Officials have indicated that SMRs, along with floating solar solutions, are being studied as part of a broader push to diversify energy sources and expand renewable generation capacity.

    Water and waste

    Bids for four Ewa-owned projects are currently being evaluated. This includes the construction of a new SWRO desalination plant on Hawar Island and rehabilitation works for the Ras Abu Jarjur water treatment plant in Askar. Contracts for both projects are expected to be awarded this year.

    Bahrain’s Ministry of Works (MoW) is the other client for the island-state’s power and water infrastructure-related projects. It has awarded three smaller sewage-related contracts this year.

    It is also preparing to tender the construction of a $130m sewage treatment plant in Khalifa City, which will be developed in two phases. Meanwhile, the construction of MoW’s sewerage scheme phase 2 network in Bahrain remains in the early design stage with no further updates.

    As Bahrain moves ahead with these projects, the new electricity and water law could define how future investments are structured, regulated and financed. This could reshape the kingdom’s utilities landscape for decades to come.

    MEED's December special report on Bahrain also includes:

    > ECONOMY: Bahrain’s cautious economic evolution
    > BANKING: Mergers loom over Bahrain’s banking system
    > OIL & GAS: Bahrain remains in pursuit of hydrocarbon resources
    > CONSTRUCTION: Bahrain construction faces major slowdown
    > TRANSPORT: Bahrain signs game-changer aviation deal with Air Asia

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15044915/main.gif
    Mark Dowdall
  • Masdar and OMV sign 140MW green hydrogen plant deal

    7 November 2025

    Register for MEED’s 14-day trial access 

    Abu Dhabi Future Energy Company (Masdar) has signed a binding agreement with Austrian energy company OMV to develop and operate a major green hydrogen production plant in Austria.

    The 140MW green hydrogen electrolyser plant will be Europe's fifth-largest hydrogen plant, according to Masdar chairman, Sultan Ahmed Al-Jaber.

    It will be built in Bruck an der Leitha, about 40 kilometres southeast of Vienna.

    The facility will be developed under a newly established joint venture, in which Masdar owns 49% and OMV holds the majority 51% stake.

    The agreement was signed at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec), in the presence of Al-Jaber; Austria’s Federal Minister of Economy, Energy and Tourism, Wolfgang Hattmannsdorfer; OMV CEO Alfred Stern; and Masdar CEO Mohamed Jameel Al-Ramahi.

    It is expected that the project will reach financial close in early 2026, subject to final documentation, shareholder consent and regulatory approvals.

    Construction began in September, with operations scheduled to start in 2027.

    OMV, which already operates a 10MW electrolyser in Schwechat, will procure renewable electricity for hydrogen production and retain ownership of the output.

    Several large-scale hydrogen facilities across Europe are currently under construction.

    In 2024, Germany's Siemens Energy signed a deal with German utility EWE to build a 280MW green hydrogen electrolysis plant. This is expected to begin operations in 2027.

    Masdar and OMV previously signed a letter of intent to cooperate on green hydrogen, synthetic sustainable aviation fuels (e-SAF) and synthetic chemicals in both the UAE and central and northern Europe.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040802/main0933.jpg
    Mark Dowdall
  • Syria signs deal for 5GW power projects

    7 November 2025

    Register for MEED’s 14-day trial access 

    The Syrian Ministry of Energy has signed final concession agreements with an international consortium led by Qatar’s Urbacon (UCC) Holding to build and operate eight power plants with a total capacity of 5GW.

    The consortium includes Urbacon Concessions Investment (a subsidiary of UCC Holding), Kalyon GIS Energy (Turkiye), Cengiz Energy (Turkiye) and Power International (US).

    UCC Holding and Power International USA are both subsidiaries of Qatar’s Power International Holding. The US-based subsidiary was likely created to ease transactions and imports to Syria under the new General Licence 25 (GL 25) US sanctions exemptions for Syria.

    The final contracts cover the construction and operation of the following four natural gas-fired combined-cycle plants:

    • North Aleppo (1,200MW)
    • Deir Ezzor (1,000MW)
    • Zayzoun (1,000MW)
    • Mehardeh (800MW)

    It also includes four solar projects totalling 1,000MW across Widian Al-Rabee, Deir Ezzor, Aleppo and Homs.

    The agreements were signed in Damascus by Energy Minister Mohammad Al-Bashir and UCC Holding president Ramez Al-Khayyat, in the presence of consortium representatives and senior Syrian energy officials.

    The deal represents Syria’s first integrated public-private partnership model in the energy sector and marks the start of the implementation phase of Syria’s national energy rehabilitation programme. 

    The projects also form part of a wider Qatari investment package in Syria.

    In May, the ministry signed a $7bn memorandum of understanding that set the framework for strategic energy cooperation.

    Preparatory engineering and technical works, including site surveys and feasibility studies, have since been completed.

    Completion is expected within three years for the gas plants and two years for the solar plants, with the projects doubling the country’s output.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040717/main.jpg
    Mark Dowdall