Adnoc Drilling inked a USD 112 mn agreement to acquire a 70% stake in the land drilling business of US oil and gas wells drilling company Schlumberger Middle East (SLB) in Kuwait and Oman with a mechanism in place to acquire SLB’s remaining 30% stake over time, according to a joint statement (pdf). The transaction is expected to close in 1Q 2026.

This marks Adnoc Drilling’s first inorganic expansion outside the UAE, underscoring the company’s ambition to evolve from a domestic giant into a regional player in the integrated drilling services market. The move comes as part of a broader strategy to diversify geographically and capitalize on a growing GCC energy services market. It follows the company’s USD 1.7 bn Enersol JV with SLB and Patterson to tap into unconventional resources.

The details: The transaction establishes a joint venture with SLB and grants the state-owned oil company immediate operational control of eight active rigs — two in Kuwait and six in Oman — already under long-term contracts with national oil companies. The rigs are fully operational, and the contracts extend into 2028, contributing an estimated USD 120 mn this year in revenue and EBITDA margins of over 38%. The agreement was made at an implied valuation of 4x EBITDA.

The JV will be a “highly complementary and value-accretive addition” to Adnoc Drilling’s portfolio, CEO Abdulrahman Abdulla Al Seiari said. The new agreements will boost revenues to over USD 5 bn by 2026, CFO Yousef Salem told Asharq Business (watch, runtime: 1:46).

Payment terms: Adnoc will pay an earn-out of USD 21 mn linked to the overall business performance, and USD 91 mn excluding potential earn-out, with the company planning to finance the transaction through its existing debt capacity. The final purchase price is subject to adjustments based on the net debt position (total debt minus cash) at the time of closing.

Big goals ahead: Adnoc Drilling expects to operate more than 151 rigs by 2028. The company has been eyeing drilling businesses in Kuwait and Oman for a while since it was pre-qualified for operations in the two countries. The company had also earmarked USD 350 mn for acquisitions through its JV with Alpha Dhabi, Enersol, in 2H 2025 as part of USD 1 bn in planned capital expenditure for inorganic growth, which will include some USD 150 mn in acquisitions of rigs overseas in Kuwait and Oman, and another USD 500 mn for rigs and equipment inside the UAE, Salem told us previously.

Market reax: Adnoc Drilling’s shares were up 1.7% to AED 5.3 at yesterday’s close.

OTHER M&A NEWS-

Investcorp Capital exits USD 550 mn in US multifamily assets: ADX-listed alternative asset manager Investcorp Capital has exited 12 US multifamily real estate assets across five states for a total of USD 550 mn, the company said in an ADX disclosure (pdf). The portfolio, which included a 432-unit apartment community in Atlanta, was sold at a premium despite softer market conditions. The assets were 94% occupied on average and located in key rental markets in Atlanta, Philadelphia, Missouri, and Florida.

The sale marks another sale by Investcorp Capital as it aims to realize gains while reallocating capital into new assets. It follows the company’s USD 360 mn exit from its US industrial portfolio in April and its full divestment earlier this week from Indian budget fashion chain Citykart, which delivered a 4x return. More exits are expected from its Indian portfolio, and it also expanded into the Italian market through a takeover of payments firm Epipoli.

AND- ICD offloads its stake in Corporación América Italia: Dubai’s investment arm, the Investment Corporation of Dubai (ICD), sold its 25% stake in airport operator Corporación América Italia (CAI) to the Corporación América Airports (CAAP), according to a press release. CAAP now fully owns CAI following this transaction.

The details: The transaction took place through a share swap agreement, with CAAP providing over 1.9 mn newly issued shares to ICD as consideration for the 25% interest in CAI

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