Baker Hughesy E is holding 5% of ADNOC Drilling for AED 2 billion

Media In – Abu Dhabi – 8 October 2018 / WAM /

 Abu Dhabi National Oil Company (ADNOC) today signed a strategic partnership agreement with BHG’s Baker Hughes to support the growth and development of ADNOC Drilling, one of ADNOC’s subsidiaries and a leading provider of integrated oil and gas drilling services, . Under the terms of the agreement, Baker Hughes AG will acquire a 5% stake in ADNOC Drilling Company for AED 2 billion – $ 550 million. ADNOC will remain the owner of 95% majority stake in ADNOC Drilling. ADNOC and Baker Hughes GE will collaborate to expand ADNOC Drilling Services and support their drilling and well-drilling capabilities, reduce drilling time, enhance process efficiency and reduce costs. This is the first time ADNOC has allowed a global strategic partner to acquire a direct stake in one of its service subsidiaries. The partnership supports ADNOC’s efforts to increase profitability and maximize the value of each barrel of oil produced. It plans to expand conventional drilling activities by 40% by 2025 and to increase the number of non-conventional wells in line with its integrated 2030 Smart Growth Strategy. Dr. Sultan bin Ahmed Al Jaber, Minister of State and Chief Executive Officer of Abu Dhabi National Oil Company (ADNOC) and its group of companies, said: “In line with the leadership’s directives to build strategic partnerships that contribute to maximizing the value of ADNOC’s work in various aspects of the oil and gas sector, This agreement is with Baker Hughes GE, which comes in line with the growing demand for drilling services in Abu Dhabi as we develop and develop our conventional and non-traditional hydrocarbon resources. We also seek to take advantage of potential opportunities for growth and expansion across the region. ” “This unique partnership with Baker Hughes GE will contribute to the growth and development of our exploration, development and production business as well as our efforts to enhance value and economic return.” This partnership is an important step in the implementation of the ADNOC 2030 Smart Growth Strategy Through which we focus on increasing operational efficiency, improving performance and increasing the value of each barrel of oil produced. “