ADNOC Drilling completes acquisition of 80% stake in MB Petroleum Services
ADNOC Drilling finalised the acquisition of an 80% stake in MB Petroleum Services, expanding its regional drilling platform and operational footprint across the Gulf. (155 characters)
ADNOC Drilling announced on May 4, 2026 that it has completed the acquisition of an 80% stake in MB Petroleum Services, marking a major expansion of its regional drilling business. The acquisition, executed through a wholly owned subsidiary, adds a ready operational platform across key Gulf states and will be consolidated into ADNOC Drilling’s onshore drilling segment. The deal was completed ahead of its previously scheduled mid‑2026 timeline, reflecting rapid execution and coordination between the parties.
Deal structure and ownership
Under the terms of the agreement, ADNOC Drilling holds an 80% equity interest in the joint venture through its wholly owned subsidiary, while MB Holding retains a 20% stake via its affiliate. The transaction values the joint venture at an enterprise value of AED 749.2 million and preserves the joint venture as an independent operating entity under ADNOC Drilling’s ownership. ADNOC Drilling will fully consolidate the joint venture’s financial results into its onshore drilling segment from the completion date.
Regional footprint and assets acquired
MB Petroleum Services operates across four Gulf markets: Oman, Kuwait, Saudi Arabia and Bahrain, providing drilling and oilfield services. The acquired portfolio includes 22 drilling rigs and a dedicated maintenance rig, production service units, operating subsidiaries and pre‑existing contractual facilities that underpin near‑term revenue. The company also secured four additional rig contracts announced in January 2026 — three in Kuwait and one in Oman — which are scheduled to commence between the second half of 2026 and the first half of 2027.
Financial performance and expected contribution
ADNOC Drilling said the joint venture delivered a strong operating record in 2025, reporting revenue of approximately AED 734.6 million and an EBITDA margin near 30%. Earlier quarterly results showed the joint venture produced cash flows that were 20% higher and net profit about 40% higher in the first quarter of 2026 compared with prior baselines. Management expects the acquired business to support earnings, cash flow and returns, with 2027 earmarked as the first full fiscal year in which the joint venture will contribute to ADNOC Drilling’s consolidated annual results.
Leadership continuity and operational governance
ADNOC Drilling confirmed that MB Petroleum Services will continue to be led by its current chief executive, Dr. Salem Al‑Harthi, to ensure operational continuity and leverage local expertise. ADNOC Drilling’s CEO, Abdullah Atiyah Al‑Musaibi, said the transaction enhances the company’s long‑term regional operating capabilities by combining MB Petroleum Services’ on‑the‑ground presence with ADNOC Drilling’s scale, governance and advanced operating systems. The buyer also signalled plans to preserve the joint venture as a standalone operating structure while applying robust governance frameworks.
Strategic rationale and integration approach
The acquisition forms part of ADNOC Drilling’s disciplined M&A strategy focused on assets with proven operational efficiency and growth opportunities. Management highlighted plans to accelerate operational consistency and safety performance through broader adoption of automation, artificial intelligence, digital systems and structured data flows across the combined fleet. The company also emphasised continued investment in workforce capabilities to support sustainable regional operations and service delivery.
Near‑term outlook and market positioning
With its expanded asset base and immediate contracts, the joint venture is positioned to strengthen ADNOC Drilling’s service offering across the Gulf and support customers with a larger, geographically diversified fleet. The addition of MB Petroleum Services supplies incremental revenue visibility and operational scale ahead of expected rig activations in late 2026 and early 2027. ADNOC Drilling anticipates that the acquisition will contribute to improved utilisation, heightened safety standards and measurable efficiency gains as integration progresses.
The acquisition of MB Petroleum Services signals ADNOC Drilling’s intent to scale regionally through targeted buys that bring established operations and near‑term contract coverage, while retaining local leadership to preserve executional strengths.