Adnoc Drilling and Alpha Dhabi Holding has announced the incorporation of its strategic investment joint venture (JV) at Abu Dhabi Global Market. The JV will pursue global investments in energy technology and bolster tech-enabled energy services.
As the inaugural investment, Alpha Dhabi has contributed its 25 per cent equity stake in Gordon Technologies, a leading provider of measurement while drilling (MWD) technology to the oil and gas industry in the US. The equity stake has been valued at circa $180 million.
The establishment of this JV, and the contribution of Gordon’s 25 per cent share capital, is expected to bring value accretive returns to both shareholders and will be synergistic with Adnoc Drilling’s business. It will also support Adnoc Drilling’s long-term dividend growth profile.
As disclosed on 10 November 2023, Adnoc Drilling holds a majority 51 per cent stake in the JV, with the remaining 49 per cent held by Alpha Dhabi, with equal Board representation for both parties.
The JV’s financial results will be accounted for by Adnoc Drilling through the equity method starting from the Company’s 1Q 2024 financial results.
The JV intends to acquire and invest in companies offering tech-enabled oilfield services solutions, subject to the relevant regulatory approvals, and foster a scalable ecosystem that will enhance market value and optimise operational efficiencies.
Abdulrahman Abdullah Al Seiari, Chief Executive Officer of Adnoc Drilling, said: "Through the incorporation of our JV we are set to accelerate investment in tech-enabled energy solutions. Access to these technologies will support us in our operations, and to accelerate well delivery optimisation in the development of unconventional resources as we strive to enable gas self-sufficiency for the nation."