ADNOC Drilling Expands into Oman: What the SLB Land-Rig Deal Means for Investors and Entrepreneurs
MUSCAT: ADNOC Drilling, the drilling subsidiary of the Abu Dhabi National Oil Company, has officially established a presence in Oman’s onshore drilling market following its acquisition of a controlling interest in a joint venture with SLB. This joint venture operates six land rigs currently active within Oman.
According to a filing submitted to the Abu Dhabi Securities Exchange on January 1, 2026, ADNOC Drilling’s wholly owned subsidiary, ADH RSC Ltd, acquired a 70% stake in SLDC Holdings RSC Ltd, the joint venture formed with SLB for land drilling operations in both Oman and Kuwait.
This acquisition is noteworthy for Oman as it represents an immediate operational foothold rather than a gradual market entry. The joint venture manages a total fleet of eight rigs—six in Oman and two in Kuwait—all fully operational and working under existing contracts with national oil operators.
The agreement, initially announced in May 2025, values the 70% stake at up to $112 million. This includes $91 million paid upfront and a potential performance-based earn-out of up to $21 million, subject to customary closing adjustments. SLB retains a 30% interest in the venture, with ADNOC Drilling having a structured option to acquire the remaining shares over time.
This transaction introduces a major new player into Oman’s onshore drilling sector amid regional industry priorities focusing on execution reliability, safety standards, and cost efficiency. ADNOC Drilling aims to enhance rig performance through operational efficiencies and advanced digital technologies designed to reduce downtime, accelerate drilling cycles, and improve safety compliance—key factors that positively impact field economics and scheduling.
The company expects the full financial and operational impact of the acquisition to be reflected in its 2026 annual results.
Special Analysis by Omanet | Navigate Oman’s Market
ADNOC Drilling’s acquisition of a controlling stake in a major land-rig joint venture immediately positions it as a key onshore player in Oman, signaling heightened competition and operational sophistication in the sector. For businesses, this move underscores the importance of embracing digital efficiency and cost discipline to stay competitive, while investors should watch for opportunities tied to improved rig performance and stability in drilling contracts. Smart entrepreneurs and stakeholders must now consider strategic partnerships or technology adoption to leverage enhanced operational capabilities and meet evolving market demands.
