Page 8 - MEOG Week 36 2021

MEOG FINANCE & INVESTMENT MEOG

ADNOC to sell stake

in drilling arm via IPO

UAE THE drilling arm of Abu Dhabi National Oil Co. offering up until the price is set.
(ADNOC) announced this week that it intends ADNOC Drilling’s fleet will be key to the par-
to list on the local stock exchange, with the parent ent firm achieving its crude production goals of
firm to sell a minimum of 7.5% in the company. raising output from 4mn barrels per day to 5mn
The announcement follows months of specu- bpd by 2030.
lation and ADNOC having already successfully The move is one of a spate of IPOs and secu-
listed a share in its retail fuel division ADNOC ritisations across the Middle East, following the
Distribution in 2017. 2019 listing of Saudi Aramco, which raised a
ADNOC Drilling said on September 6 that world record $29.4bn.
“subscriptions will start on 13 September and Saudi Arabian state-backed Arabian Drilling
close on 23 September 2021, and shares will start Co. (ADC) is also understood to be preparing to
trading on 3 October 2021 on the ADX” follow- list with a target valuation of around $2bn.
ing the setting of the final price on September 27. Saudi’s Industrialisation & Energy Services
Co. (Taqa) holds a 51% stake in ADC, with
ADNOC Drilling is the largest driller in the global services specialist Schlumberger owning
region and has a fleet of 107 rigs, 96 of which are the remaining 49%.
owned and 11 rigs rented. Speaking on condition of anonymity, sources
These comprise 75 onshore rigs, 20 offshore told Bloomberg in May that ADC has asked
jack-up rigs, 11 island rigs and a self-propelling banks to pitch for work in the potential listing.
barge. According to the company’s website, ADC
In October 2018, GE subsidiary Baker was formed in 1964 and lists major clients
Hughes (BHGE) acquired a 5% stake in the including Saudi Aramco, Schlumberger and
company for $550mn, valuing the subsidiary at Al-Khafji Joint Operations (KJO) – the joint
$11bn with the companies advised on the trans- venture between Kuwait Petroleum Corp.’s
action by Citigroup and Moelis & Co. Kuwait Gulf Oil Co. (KGOC) subsidiary and
The remaining 95% remains under ADNOC’s Aramco subsidiary Aramco Gulf Operations Co.
control. The company said that its parent has (AGOC), which manages the offshore portion of
retained the right to increase the size of the the partitioned neutral zone (PNZ).™

Source: ADDNOC Drilling

P8 www. NEWSBASE .com Week 36 08•September•2021