Adnoc Drilling to acquire 80% stake in MB Petroleum Services
- Last updated: November 5, 2025 | 21:17
Adnoc Drilling Company announced on Wednesday that it has entered into a definitive agreement to acquire 80 per cent of MB Petroleum Services (MBPS), one of the leading drilling and oilfield services (OFS) providers in the region with operations in Oman, Kuwait, Saudi Arabia and Bahrain.
This transaction marks Adnoc Drilling’s second acquisition in the region, subject to regulatory approvals. This milestone deal is expected to significantly accelerate Adnoc Drilling’s regional expansion strategy, adding scale and capability and strengthening presence in four key Gulf economies.
The enterprise value of the transaction is $204 million (Dhs749 million), and the portfolio consists of 21 drilling and workover rigs, production service units, complemented by pre-qualifications, subsidiaries and established presence across four key Gulf geographies.
Adnoc Drilling remains committed to rigorous capital discipline, ensuring every investment is value-accretive and aligned with its robust financial framework. The transaction exemplifies the Company’s focus on prudent capital allocation and sustainable returns. This value-accretive transaction reflects Adnoc Drilling’s disciplined approach to growth, with the transaction expected to generate attractive returns.
Abdulla Ateya Al Messabi, Adnoc Drilling CEO, said, “This is a defining moment in Adnoc Drilling’s journey. The transaction represents a strategic leap that is expected to amplify our capabilities, accelerate our regional momentum and reinforce our position as a key energy services provider in the region.
“Upon completion, this partnership not only will strengthen our regional footprint but also position us to deliver enhanced value to our clients and shareholders in a rapidly evolving energy landscape.”
Adnoc Drilling’s robust business model, built on operational excellence, integrated services and a diversified fleet, enables the company to deliver consistent performance and adapt to evolving market dynamics.
Upon completion and subject to regulatory approvals, this acquisition is expected to further strengthen Adnoc Drilling’s operational and financial resilience, positioning the company to navigate market cycles and deliver reliable results for clients and shareholders.
As demand for energy services surges across the region, Adnoc Drilling is strategically positioned to capture growth, deliver high-performance solutions, and unlock shareholder value.
The transaction is expected to close in 1H 2026, subject to customary conditions, including the receipt of applicable regulatory approvals.
Adnoc Drilling Company last week reported record financial results for the first nine months (9M) of 2025, with revenue rising 27 per cent year-on-year to $3.63 billion and net profit up 17 per cent to $1.06 billion. Free cash flow surged 174 per cent to $1.2 billion.
The results delivered record profitability and cash generation, driven by strong operational execution, resilient long-term contracts, and accelerated adoption of AI-powered technologies across the fleet.
Abdulla Ateya Al Messabi, Adnoc Drilling CEO, said, “Our record performance in 2025 showcases the strength and resilience of our business model and disciplined execution.”
“We are scaling unconventionals to a potential of over 300 wells annually, expanding our Integrated Drilling Services (IDS) fleet to 70 rigs and preparing for new offshore island operations by the end of the decade,” he said.
Al Messabi stated, “These milestones can add billions in new revenue streams, de-risked by our in-house expertise and powered by our ambition to become AI-native. With our enhanced dividend policy targeting at least $6.8 billion through 2030, Adnoc Drilling is setting a new global standard for reliable, growing shareholder returns.”
The Board of Directors approved a 3Q 2025 dividend of $250 million (approximately 5.7 fils per share), payable in the second half of November 2025 to shareholders of record as of 6th November 2025. This reflects Adnoc Drilling’s commitment to progressive, reliable income for investors.
The company’s enhanced dividend framework, announced at the Adnoc Investor Majlis, which will be presented for approval at the next Annual General Assembly, targets at least $6.8 billion in distributions from 2025 to 2030, providing long-term visibility and confidence for shareholders.
By segment, the onshore division posted revenue of $1.52 billion, up 13 per cent YoY, coupled with a higher contribution from the unconventional business.
The offshore (Jack-up and Islands) business generated $1.04 billion in revenues, a 3 per cent increase, driven by the reactivation of island rigs, along with the positive impact from jack-ups commencing operations at the end of the second quarter 2025
WAM