ADNOC Acquires 80% Stake in MB: What This Major Move Means for Investors and Entrepreneurs in Oman
MB Group, one of Oman’s largest and most diversified business conglomerates, has announced the strategic sale of an 80% stake in its oilfield services subsidiary, MB Petroleum Services MENA (MBPS), to ADNOC Drilling. MB LLC will retain a 20% ownership in MBPS.
This transaction represents a significant milestone in MB Group’s evolution as a diversified private investment house and marks a key step in ADNOC Drilling’s regional expansion. Over more than four decades, MBPS has played a pioneering role in the development of the oilfield services sector across Oman and the wider MENA region.
Usama al Barwani, Vice Chairperson of MB Group, stated, “This is a significant milestone in our Group-wide focus on being at the forefront of value and technology across our industries, including Energy, Mining, Engineering Services, and Real Estate Development. ADNOC Drilling is a major player known for its sustainability and technological advancements. We look forward to a promising future for oil well services in the MENA region.”
Al Jabri, CEO of MB LLC, highlighted MBPS’s achievements, saying, “This accomplishment reflects MBPS’s expertise in the MENA region, its strong health, safety, and environmental (HSE) record, and its technical excellence. MBPS has established a robust legacy in Oman’s oilfield and well services sector as the first company in the field, achieving over 84% Omanisation in Oman and strong localization across other MENA countries.”
Dr Salim al Harthy, CEO of MBPS, remarked on the company’s future, “We thank the entire MBPS team for their contributions since 1982, which have positioned Oman strongly in this critical sector. Our teams continue to deliver exceptional value in Oman, Saudi Arabia, Bahrain, and Kuwait. We look forward to MBPS’s next chapter with ADNOC, leveraging shared technical and operational expertise for even greater success.”
Since its inception in 1982, MBPS has become a trusted partner to energy sector operators and governments across the Middle East. Its notable strengths include a strong safety record—over 18 years without lost-time injuries (LTI) in hoist 34—and status as one of the largest drilling fluid suppliers in the region. MBPS has logged more than 10,000 oil, gas, and geothermal well interventions. Presently, MBPS MENA holds long-term contracts for over eight drilling rigs, 13 workover rigs/hoists, and six wireline and well testing units, operated by more than 1,400 professionals across five MENA countries.
The legal advisor for MB Group was Herbert Smith Freehills Kramer LLP, with Houlihan Lokey serving as exclusive financial advisor for the transaction.
MB Group’s diversified portfolio spans mining, energy, engineering services, real estate development, private air services, and superyacht manufacturing, with operations across Asia, Africa, and Europe.
Special Analysis by Omanet | Navigate Oman’s Market
The strategic sale of 80% of MB Petroleum Services to ADNOC Drilling signals a major consolidation and technological advancement in Oman’s oilfield services sector, presenting opportunities for enhanced regional integration and innovation. For businesses and investors, this move highlights the importance of leveraging partnerships with industry leaders to capitalize on evolving energy demands and sustainability trends in the MENA region. Smart players should consider focusing on technology-driven services and strong localization strategies to maintain competitive advantage in the rapidly transforming energy market.
