ADNOC Drilling has announced that it will acquire an 80 percent stake in MB Petroleum Services for about 204 million US dollars. The move marks one of the company’s largest regional expansions to date and strengthens its presence across the Gulf region.
The acquisition will add 21 rigs currently under operation to ADNOC Drilling’s portfolio. These rigs are spread across Oman, Kuwait, Bahrain, and Saudi Arabia, giving the company a wider operational reach beyond its base in the United Arab Emirates. Thirteen of these rigs operate in Oman, four in Kuwait, and four in Bahrain.
According to company executives, the rigs being acquired already have long-term contracts in place, with a backlog of around 270 million US dollars in committed work through 2033. This means the value of ongoing contracts exceeds the cost of the acquisition, which is expected to deliver steady cash flow and profitability over the next several years.
The deal is expected to close in the first half of 2026, subject to the necessary regulatory approvals from the countries involved.
The acquisition highlights ADNOC Drilling’s strategy to expand its footprint across the Gulf and diversify its business beyond the UAE. The company has been steadily growing its portfolio in recent years, focusing on both conventional and unconventional drilling markets.
By acquiring MB Petroleum Services, ADNOC Drilling gains access to new markets and clients while building stronger relationships with key oil-producing nations in the region. The timing is also significant, as drilling activity across the Middle East has reached high levels and demand for onshore and offshore rigs remains strong.
The deal allows ADNOC Drilling to tap into MB Petroleum’s decades of experience in oil-field operations. MB Petroleum Services, founded in Oman in 1986, is one of the most respected regional drilling contractors. It has a proven record of efficiency and reliability in providing drilling and well services, which complements ADNOC Drilling’s own operational strengths.
From a financial perspective, the acquisition is considered a value-driven move. ADNOC Drilling secured the stake for less than four times MB Petroleum’s earnings before interest, taxes, depreciation, and amortization. Analysts say the investment is expected to generate a free cash flow yield above ten percent and an internal rate of return exceeding fifteen percent.
Such figures show ADNOC Drilling’s disciplined approach to expansion. The company continues to focus on growth projects that offer long-term financial stability and operational benefits. The additional rigs will also contribute to ADNOC Drilling’s capacity to meet rising regional energy demand and expand its client base.
For MB Petroleum Services, this acquisition brings a strong new partner with greater financial resources and technical expertise. It also gives MB Petroleum’s operations more visibility and access to ADNOC Drilling’s growing network of international clients.
While MB Petroleum will continue to operate under its brand in certain markets, it will benefit from ADNOC Drilling’s capital support and modernization initiatives. This collaboration is expected to improve overall service quality and efficiency, benefiting both companies and their customers.
Although the acquisition promises growth, several challenges remain. Each Gulf country involved has its own regulatory requirements, which could delay the final approvals. Integration of the MB Petroleum workforce and systems into ADNOC Drilling’s structure may also take time.
However, industry observers believe ADNOC Drilling’s strong management, experience in cross-border operations, and robust financial position will help it overcome these challenges smoothly.
Once finalized, the deal will make ADNOC Drilling one of the largest regional rig operators, expanding its fleet and strengthening its market dominance. It also reflects the company’s broader ambition to transform into a regional leader in energy services, capable of competing with global players while supporting local economies.
This acquisition underscores ADNOC Drilling’s confidence in the Gulf’s oil and gas sector, which remains a vital driver of regional growth. With strong contracts, reliable assets, and an experienced workforce, ADNOC Drilling’s latest move positions it as a key player shaping the future of drilling services in the Middle East.
