Abu Dhabi’s Adnoc plans to float a 7.5% stake in the oil drilling division

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Abu Dhabi National Oil Company Update

Abu Dhabi National Oil Company plans to list a 7.5% stake in its drilling unit through an initial public offering on the Gulf Emirate’s stock exchange next month.

Adnoc Drilling is 95% owned by Adnoc, and the company has begun to modernize in recent years, including diversifying its investor base and releasing cash from its infrastructure.

In 2018, when Baker Hughes acquired 5% of the business, Adnoc Drilling’s equity was valued at $10 billion.

Adnoc CEO Sultan Al Jaber said: “The value creation opportunities of Adnoc Drilling, including large-scale drilling fleet expansion and drilling programs, enable the company to take full advantage of emerging opportunities.”

The offering is open to domestic and foreign investors and is expected to take place on the Abu Dhabi Stock Exchange (ADX) in October, subject to market conditions and regulatory approvals. Can increase the scale of the product.

The United Arab Emirates is already the third largest producer of OPEC and is committed to increasing its production from 4 million barrels per day to 5 million barrels per day.

Earlier this year, the Gulf country refused to support the planned OPEC + production increase plan and clashed with its larger neighbor, OPEC’s major country, Saudi Arabia. Abu Dhabi believes that its “benchmark” should be raised, that is, the level of OPEC quota calculations.A sort of Compromise transaction Reached in July to increase the UAE’s benchmark quota from 3.2 million barrels per day to 3.5 million barrels per day.

Adnoc Drilling is the largest drilling company in the Middle East and Adnoc’s sole drilling service provider. In 2020, Adnoc Drilling’s revenue will be 2.1 billion U.S. dollars and profit will be 569 million U.S. dollars.

This transaction will be Adnoc’s second IPO since its distribution division (the largest gas station and convenience store operator in the UAE) went public in 2017.

National Petroleum Corporation has opened its refinery and oil and gas pipeline businesses to international investors. It also seeks to sell shares in its power plants and other infrastructure.

Earlier this year, Adnoc began trading futures of its flagship crude oil Murban on the ICE Futures Abu Dhabi, a commodity exchange in the capital’s financial district.

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