Helmerich & Payne plans to invest $100 million in Adnoc Drilling IPO

Helmerich & Payne plans to invest $100 million in Adnoc Drilling IPO

The Abu Dhabi National Oil Company (Adnoc) and its subsidiary Adnoc Drilling Company (Adnoc Drilling) and Helmerich & Payne, Inc (H&P), a provider of rig technologies and drilling solutions, jointly announced on Wednesday a strategic alliance, that will see Adnoc Drilling acquire eight FlexRig land rigs from H&P for $86. 5 million. Following this transaction, H&P will make a $100 million cornerstone investment into Adnoc Drilling's recently announced Initial Public Offering (IPO). The strategic alliance and rig acquisition will support Adnoc's target of reaching 5 million barrels per day (mbpd) production capacity and gas self-sufficiency for the UAE by 2030, along with plans to unlock its unconventional oil and gas resources. These agreements will further drive Adnoc Drilling's growth and expansion as well as enhance its rig-based operational performance by providing access to the world-class H&P FlexRig land rig fleet and leveraging H&P's expertise and technologies. In addition, the alliance will support Adnoc Drilling in further driving operational excellence through maintenance efficiencies, supplementing supply-chain capabilities, and adding engineering and rig design competencies. The alliance will also deliver more competitive well completion times, greater drilling efficiencies and improved well economics. For H&P, these agreements help facilitate its goal of allocating capital