UAE-based largest national drilling firm, ADNOC Drilling Company and American petroleum contract drilling company, Helmerich & Payne (H&P) have signed a Rig Enablement Framework Agreement to advance ADNOC Drilling’s land rig operational performance and expansion plans.
The Framework Agreement, which focuses on enhancing drilling efficiencies and unlocking operational savings, builds on the Asset Purchase Agreement and Initial Public Offering (IPO) Cornerstone Agreement announced on September 8, 2021, further strengthening the strategic alliance between ADNOC Drilling and H&P.
ADNOC Drilling’s recent IPO was the largest-ever listing on ADX, raising over $1.1 billion and marking a significant milestone in ADNOC’s value creation strategy. The IPO was oversubscribed more than 31 times due to strong demand, indicating great confidence in the Company’s growth trajectory. As a Cornerstone Investor, H&P committed $100 million to the IPO, subject to a three-year lock-up term.
“The Rig Enablement Framework Agreement is a natural evolution of both our strategic alliance with H&P and ADNOC Drilling’s growth trajectory. By sharing global best practices and further optimizing our world-class rig fleet, this agreement turbocharges ADNOC Drilling’s significant competitive advantage, enabling us to further capitalize on and cement our leading position as the largest national drilling company in the Middle East and the only national drilling company that offers start-to-finish well services. The resulting efficiency gains will deliver enhanced operational excellence, in turn delivering even greater value to our shareholders.”
Mr. John Lindsay, President and CEO of H&P, commented that “We are excited about our alliance with ADNOC Drilling. Our cornerstone investment in ADNOC Drilling’s IPO supported the execution of our international growth strategy to allocate additional capital outside the U.S. and is a testament to our belief in what ADNOC Drilling and H&P can achieve together. The finalization of the Framework Agreement now provides further opportunity to build on this strategic relationship and combine our capabilities to deliver exceptional operational performance.”
Related: ADNOC Drilling signs 5-year drilling service deal with ADNOC Onshore