Abu Dhabi’s ADNOC Drilling is embarking on a significant dual expansion, venturing into Kuwait and Oman through a strategic acquisition while simultaneously bolstering its technologically advanced rig fleet for domestic offshore megaprojects. The moves signal an accelerated growth phase for the UAE’s largest drilling contractor as it seeks to capitalise on robust regional energy demand.

The company announced on May 29 an agreement to acquire a 70% stake in SLB’s land drilling business in Kuwait and Oman for up to $112mn. This deal, its first international foray, includes eight operational rigs – six in Oman and two in Kuwait – secured by long-term contracts with national oil companies.

“Through this partnership, Adnoc Drilling will gain immediate access to earnings, cashflow and returns,” the company said. ADNOC Drilling’s Chief Financial Officer, Youssef Salem, highlighted the potential to double this acquired rig count within a year. The transaction, involving a $91mn upfront payment and a $21mn performance-based earnout, is expected to close in the first quarter of 2026 and is supported by a $1bn credit facility.

Parallel to this regional push from its 57-rig UAE base, ADNOC Drilling recently secured an $806mn contract from ADNOC Offshore for three newbuild, AI-enhanced island rigs. These supplement a prior order for three similar units, all destined for the ambitious Upper Zakum offshore oilfield development.

Abdulrahman Abdulla Al Seiari, ADNOC Drilling’s CEO, described this as “another major milestone in our accelerated growth journey,” calling the rigs a “leap forward in technology, enhancing safety, efficiency and performance.” He underscored the company’s role as a “critical enabler of ADNOC’s production capacity targets,” promising “sustainable, high-quality returns for our shareholders well into 2038 and beyond.”

Developed in partnership with Honghua Group, these next-generation units, expected online between 2027 and 2028, will integrate artificial intelligence and predictive analytics. Features such as “walking” capabilities will allow seamless movement between well slots, optimising complex extended reach drilling.

These advanced rigs will support the multi-billion dollar expansion of Upper Zakum, the world’s second-largest offshore field, where ADNOC Offshore, in partnership with Japan’s Jodco and ExxonMobil, is targeting a production capacity of 1.5mn barrels per day. Tayba Abdul Rahim Al Hashemi, CEO of ADNOC Offshore, said her division is “focused on unlocking maximum value from the resources in Abu Dhabi’s waters,” adding, “These advanced island rigs delivered by ADNOC Drilling will play a vital role in achieving our production capacity goals.”

This vast undertaking, with Technip Energies handling engineering design and Target Engineering Construction Co. among those awarded construction contracts, positions ADNOC Drilling at the vanguard of the region’s drive for operational excellence and expanded energy output.