06/11/2025 03:56 AST
Oman's MB Group on Wednesday announced the strategic sale of 80% of its oilfield services subsidiary, MB Petroleum Services MENA (MBPS), to ADNOC Drilling, a subsidiary of the Abu Dhabi National Oil Company (ADNOC).
ADNOC Drilling, in a press statement, confirmed that it has entered into a definitive agreement to acquire an 80% stake in MBPS, one of the leading drilling and oilfield services providers in the region, with operations in Oman, Kuwait, Saudi Arabia, and Bahrain.
The transaction marks ADNOC Drilling's second acquisition in the region, subject to regulatory approvals. The company expects the deal to significantly accelerate its regional expansion strategy by adding scale and capability, while strengthening its presence across four key Gulf economies.
"The enterprise value of the transaction is $204mn, and the portfolio comprises 21 drilling and workover rigs, production service units, complemented by pre-qualifications, subsidiaries, and an established presence across four key Gulf markets," ADNOC Drilling said in its press statement.
The transaction is expected to close in the first half of 2026, subject to customary conditions, including the receipt of all applicable regulatory approvals, the company added.
MB Group, in a separate press statement, said the strategic sale comes after more than 40 years of growth, during which MBPS played a pioneering role in developing the oilfield services sector in Oman and the MENA region.
Usama al Barwani, Vice Chairperson of MB Group, said, "This is a significant milestone in our Groupwide focus on being at the forefront of value and technology in all our industries, including energy, mining, engineering services and real estate development. ADNOC Drilling is a major player with remarkable sustainability and technological breakthroughs, and we look forward to a bright future for oil well services in the MENA region."
Herbert Smith Freehills Kramer LLP acted as legal adviser, and Houlihan Lokey as exclusive financial adviser to MB Group in connection with the transaction.
MB Group said it remains proud of MBPS's achievements and its contribution in shaping the petroleum services sector over four decades. "The group will continue to focus on advancing its diversified portfolio across mining, energy, engineering services, real estate development, private air services, and superyacht manufacture, maintaining its presence across Asia, Africa, and Europe," it added.
Abdulla Ateya al Messabi, CEO of ADNOC Drilling, said, "This is a defining moment in ADNOC Drilling's journey. The transaction represents a strategic leap that is expected to enhance our capabilities, accelerate our regional momentum, and reinforce our position as a key energy services provider in the region. Upon completion, this partnership will not only strengthen our regional footprint but also position us to deliver enhanced value to our clients and shareholders in a rapidly evolving energy landscape."
In May this year, ADNOC Drilling acquired a 70% stake in SLB's land drilling rigs business in Oman and Kuwait. The transaction included eight fully operational land rigs under contract with the respective national oil companies of both countries.
As demand for energy services surges across the region, ADNOC Drilling said it is strategically positioned to capture growth, deliver high-performance solutions, and unlock shareholder value.
Muscat Daily
Please wait...
