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Baker Hughes has agreed to acquire a 5% stake in the drilling group of the state oil company Abu Dhabi. This was the first time that the Gulf producer allowed an international partner to acquire an interest in one of its service activities.
The US-listed oil services company will spend $ 550 million on a deal worth $ 11 billion to Adnoc Drilling, the only supplier of rigs to the national oil company, companies said on Monday. .
"This will accelerate our ambitious plans and accelerate our goals," said Sultan Al Jaber, general manager of Adnoc.
The sale is part of the national oil company's transformation plan, which also includes splitting Adnoc's retail arm into an initial public offering and launching a plan for an integrated refining and petrochemical complex of $ 45 billion. Abu Dhabi seeks to increase efficiency and generate more revenue in all aspects of the Adnoc value chain.
Adnoc hopes that the partnership with Baker Hughes will strengthen the technical capacity and facilitate the transfer of knowledge to the drilling branch while Abu Dhabi plans to implement conventional and unconventional drilling plans in the emirate and beyond.
Baker Hughes, which employs 1,000 people in the United Arab Emirates, will deploy staff to Adnoc to provide integrated drilling services technologies and services to fuel Adnoc Drilling's growth.
The partnership hopes to capture 30% of the UAE drilling market over the next three years, as part of Adnoc's long-term plans to increase conventional drilling by 40% by 2025.
"With this unique approach, we can take a whole solution and make it more competitive," said Lorenzo Simonelli, president and CEO of Baker Hughes and president of Baker Hughes, who will maintain its existing operations in Abu Dhabi and serve regional customers . "We have the opportunity to get better results on the cost per well."
Adnoc is aiming for a 30% reduction in the drilling time of the wells by the end of next year.
The provision of the latest technologies will also be essential to enable Abu Dhabi to develop in unconventional drilling, a new area of development around which the company is about to present detailed plans "in the near future". said Mr. Jaber.
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