ADNOC Drilling Completes Acquisition of 80% Stake in MB Petroleum Services
📋 Key Takeaway: ADNOC Drilling has successfully acquired an 80% stake in MB Petroleum Services, enhancing its operational capabilities in the Gulf region ahead of schedule.
ADNOC Drilling Finalizes Acquisition Ahead of Schedule
ADNOC Drilling Company announced on May 4, 2026, the completion of its acquisition of an 80 percent stake in MB Petroleum Services (MBPS), a joint venture with MB Holding Company. This acquisition, which includes operations in Oman, Kuwait, Saudi Arabia, and Bahrain, was finalized ahead of the initially projected mid-year timeline, showcasing effective collaboration between the partners.
Abdulla Ateya Al Messabi, CEO of ADNOC Drilling and Chairman of MBPS, emphasized that this acquisition enhances ADNOC Drilling’s regional capabilities by integrating MBPS’s established operational scale and execution expertise. He stated, ‘This transaction reflects our disciplined, value-accretive growth strategy as we continue to invest in people and long-term capability across this region, with safety at the center of our operations.’
The agreement stipulates that ADNOC Drilling, through its wholly owned subsidiary, will hold the majority stake, while MB Holding Company retains a 20 percent share. MBPS will continue its operations under the leadership of Dr. Salim Al Harthy, ensuring a seamless transition and continuity of management.
Strategic Growth and Future Prospects
Dr. Salim Al Harthy, CEO of MBPS, described the acquisition as a significant milestone that combines regional expertise with ADNOC Drilling’s scale. He noted, ‘By combining our regional operational expertise with the strength and scale of ADNOC Drilling, we are creating a stronger platform to expand across the MENA region, enhance our capabilities, and deliver greater value to our customers.’
The financial implications of this acquisition are notable, with ADNOC Drilling expected to fully consolidate MBPS’s financial results within its Onshore segment starting from the closing date. The first full-year contribution is anticipated in 2027. The acquired portfolio includes 22 drilling and workover rigs, as well as production service units, enhancing ADNOC Drilling’s operational footprint in the Gulf.
MBPS has demonstrated robust performance, with an estimated FY 2025 revenue of approximately $0.2 billion and an EBITDA margin of around 30 percent. The first quarter of 2026 has shown even stronger results, with free cash flow exceeding expectations by over 20 percent and net income surpassing 40 percent. Additionally, MBPS secured contracts for four new rigs, further solidifying its growth trajectory.
Implications for the Energy Sector
This acquisition aligns with ADNOC Drilling’s strategy to enhance its operational capabilities and expand its market presence in the Gulf Cooperation Council (GCC) region. The integration of advanced technologies such as automation and AI into operations is expected to improve safety and efficiency, thereby positioning ADNOC Drilling as a leader in the energy services sector.
As ADNOC Drilling continues to invest in its capabilities and workforce, the partnership with MBPS is likely to yield long-term benefits, not only for the companies involved but also for the broader energy market in the region. This strategic move may also encourage further consolidation within the sector, as companies seek to enhance their operational efficiencies and market reach.
Frequently Asked Questions
What does the acquisition of MB Petroleum Services entail?
ADNOC Drilling acquired an 80% stake in MBPS, enhancing its operational capabilities across the GCC.
Who will lead MB Petroleum Services after the acquisition?
Dr. Salim Al Harthy will continue as CEO of MBPS, ensuring management continuity.
What are the expected financial impacts of the acquisition?
ADNOC Drilling will consolidate MBPS’s financial results starting from the closing date, with a full-year contribution expected in 2027.
How will this acquisition affect ADNOC Drilling’s market position?
The acquisition is expected to enhance ADNOC Drilling’s operational scale and efficiency in the energy services sector.
What technologies will be integrated post-acquisition?
ADNOC Drilling plans to incorporate automation, AI, and digital systems to improve operational safety and efficiency.
