(Bloomberg) – The drilling unit of the United Arab Emirates’ biggest oil company expects to make three acquisitions in the second half of this year totaling about $500 million, as it expands in technology and hardware to bolster growth.
Two of the deals will be for businesses developing artificial intelligence applications, ADNOC Drilling Co. Chief Financial Officer Youssef Salem said in an interview. The third will be a purchase of drilling rigs as the company expands in the Middle East.
State-owned Abu Dhabi National Oil Co. listed the drilling unit in 2021 to raise capital and develop a services company with the capacity to expand outside its home market. ADNOC Drilling plans to begin drilling in Kuwait and Oman this year after starting in Jordan in 2024.
Oil-rich Middle Eastern nations regularly tender contracts to explore for new deposits or develop previously untapped wells. Both Oman and Kuwait are looking to boost development and are seeking the services of international drillers and producers.
ADNOC Drilling will make the technology acquisitions through its joint venture company Enersol with Alpha Dhabi Holding PJSC, Salem said. It will acquire the rigs directly for about $150 million, he said.
