Leading Abu Dhabi entities - Adnoc Drilling Company and Alpha Dhabi Holding - have reached an agreement to establish a strategic investment joint venture (JV) that will invest up to $1.5 billion to acquire technology-enabled companies in the oilfield services and energy sectors.

In this new venture, Adnoc Drilling will own 51 per cent of the stake with Alpha Dhabi holding the rest of 49 per cent, bringing together a market-leading drilling and OFS expert and a prominent UAE conglomerate with a proven track-record of fueling business growth in diverse sectors. Lunate Capital will provide asset management support to the JV.

Leveraging Adnoc Drilling’s scalable technology ecosystem, the JV will be jointly controlled by Adnoc Drilling and Alpha Dhabi, and is empowered to invest in value-accretive businesses globally across the OFS and energy value chain.

This will further develop and scale up Adnoc Drilling’s integrated drilling and OFS offering and enhance operational efficiencies.

Adnoc Drilling CEO Abdulrahman Abdulla Al Seiari said: "We are excited to enter into this strategic partnership with Alpha Dhabi, that will drive further growth for Adnoc Drilling and its shareholders, enable economic diversification, and support ongoing decarbonisation efforts, benefitting all stakeholders."

"The JV will invest in innovative technology, enhancing our services, while adding depth to our offering and further expanding our business," noted Al Seiari.

The JV will identify an actionable pipeline of potential transactions that are value-accretive to both shareholders, he added.

Alpha Dhabi Managing Director and Group CEO Engineer Hamad Al Ameri said this joint venture with Adnoc Drilling marks a significant milestone in the group's commitment to driving growth and fostering innovation in the energy domain.