MUSCAT: ADNOC Drilling, the drilling arm of the Abu Dhabi National Oil Company, has formally established an operating base in Oman’s onshore drilling services market after completing the purchase of a controlling stake in a land-rig joint venture with SLB that includes six rigs working in the Sultanate of Oman.
In a filing to the Abu Dhabi Securities Exchange dated January 1, 2026, ADNOC Drilling said its wholly owned subsidiary, ADH RSC Ltd, completed the acquisition of 70% of SLDC Holdings RSC Ltd, the joint-venture vehicle set up with SLB for land drilling operations in Oman and Kuwait.
For Oman, the transaction is significant because it is not a gradual “build-up” entry. It places ADNOC Drilling on the ground with operating assets and contracted work from day one. The disclosures linked to the transaction describe an eight-rig portfolio in total, with six land rigs in Oman and two in Kuwait; and say the rigs are fully operational and working under existing contracts with national operators.
ADNOC Drilling announced the deal in May 2025, valuing the consideration for the 70% stake at up to $112 million, comprising $91 million upfront and a performance-linked earn-out of up to $21 million, subject to customary closing adjustments. SLB retains 30% in the venture and ADNOC Drilling has said the structure includes an agreed mechanism that could enable it to acquire the remaining stake over time.
The deal effectively adds a new large-scale operator to the country’s onshore drilling services landscape at a time when operators across the region remain focused on execution reliability, safety performance and cost discipline.
ADNOC Drilling has framed the joint venture as a platform to lift rig performance through operational efficiencies and the deployment of digital capabilities. If rolled out in Oman at scale, such tools typically target downtime reduction, faster drilling cycles and improved safety compliance — areas that directly influence field economics and schedule certainty. The company has also indicated that 2026 is expected to reflect the full-year impact of the transaction in its reporting following completion.
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