Adnoc Review 2019

Baker buys 5pc in Adnoc

State energy giant Abu Dhabi National Oil Company (Adnoc) has signed a strategic partnership agreement with Baker Hughes, a GE Company (BHGE) allowing the world’s second-largest services company to acquire a 5 per cent stake in Adnoc’s drilling unit.

The transaction values Adnoc Drilling at about $11 billion and Baker Hughes will receive a seat on Adnoc Drilling’s board of directors.

The agreement will enable and support the growth and development of Adnoc’s subsidiary, Adnoc Drilling, into a fully integrated drilling and well construction provider. BHGE will be the sole provider of certain proprietary leading-edge and differentiated equipment and technologies related to the integrated drilling offering, supporting Adnoc Drilling’s growth. Together, Adnoc and BHGE will deliver more competitive well completion times, greater drilling efficiencies and better well economics, and will capitalise on new business opportunities as Adnoc Drilling grows through its new expanded offering.

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