Adnoc Drilling moves to take majority of Oman’s MBPS: Adnoc Drilling agreed to snap up 80% of Muscat-based drilling and oilfield services provider MB Petroleum Services (MBPS) from Oman’s Mohammed Al Barwani for a cash consideration of USD 163 mn, implying an enterprise value of USD 204 mn, it said in a press release (pdf). The drilling arm of state-owned energy giant Adnoc will also have the option to buy up the remaining 20% currently held by Al Barwani under an agreed mechanism following an undisclosed lockup period.

The transaction is due to wrap up in the first half of 2026, once standard regulatory approvals are in place.

Adnoc drilling will tap its current debt coffers to fund the acquisition, which it says is “value accretive” and expected to generate solid returns with a free cash flow yield above 10% and an internal rate of return exceeding 15%, CFO Yousef Salem told Reuters, adding that the move is a “blueprint” for growth.

MBPS operates across Oman, Kuwait and Saudi Arabia and Bahrain, with a portfolio of 21 drilling and workover rigs (13 in Oman, and four in each of Kuwait and Bahrain) backed by production service units, prequalifications and subsidiaries along with an established presence spanning four key GCC markets through secured long-term contracts with national oil companies and other “blue-chip clients,” the release read. It generated USD 187 mn in revenue and USD 56 mn in EBITDA in 2024, implying a roughly 30% margin and an entry multiple below 4x, with a USD 0.9 bn contract backlog.

The rigs are fully operational under multi-year contracts worth about USD 270 mn extending through to 2033, Salem told Reuters separately.

IN CONTEXT- The move marks Adnoc’s second M&A play in the region. The drilling giant inked a USD 112 mn agreement back in May 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. The transaction, which marked its first inorganic expansion outside the UAE, is also expected to close in 1Q 2026.

The company aims to run more than 151 rigs by 2028 and had earmarked USD 150 mn for overseas rigs in Kuwait and Oman and USD 500 mn for assets inside the UAE, CFO Youssef Salem told us previously. It has also earmarked USD 350 mn for acquisitions through its JV with Alpha Dhabi’s Enersol in 2H 2025 as part of USD 1 bn in planned capex for inorganic growth.

Market reax: Adnoc Drilling’s shares were down 1.2% to AED 5.54 at yesterday’s close on the ADX.

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