ADNOC Drilling Acquires 80% Stake in MPM Petroleum Services for $204M Deal

ADNOC Drilling just sealed a deal to buy 80% of MB Petroleum Services for $204 million, marking its second major regional acquisition. The move puts the UAE drilling giant into four key Gulf markets - Oman, Kuwait, Saudi Arabia, and Bahrain - with immediate access to 21 drilling rigs and existing client relationships.

The acquisition comes as Gulf states ramp up oil and gas production to meet growing global energy demand. ADNOC Drilling has been aggressively expanding beyond its home base in the UAE, looking to capture more of the regional drilling market that's expected to grow significantly over the next decade.

Here's what ADNOC Drilling gets for its 749 million dirham investment: a mixed fleet of land rigs, workover rigs, and production service units, plus pre-qualified status with major oil companies across four countries. That last part matters because getting approved to work with state oil companies in the Gulf can take years - this deal cuts through that process entirely.

The transaction reflects a broader trend in the Middle East energy sector. National oil companies are pushing to increase production capacity, but they need more drilling services to make that happen. Companies like ADNOC Drilling are positioning themselves to meet that demand by buying up regional players rather than building operations from scratch.

For investors, this deal signals ADNOC Drilling's confidence in long-term regional energy demand. The company's CEO Abdullah Attia Al Masbahi called it a strategic step that will strengthen the company's position as a major energy services provider in the region. But the real test will be whether the acquired assets can generate the returns ADNOC Drilling expects in markets that can be volatile.

The timing is notable too. Energy companies across the Gulf have been flush with cash from higher oil prices over the past few years, and many are using those funds to expand their service capabilities. This creates more competition but also more opportunities for companies that can execute well across multiple markets.

The deal still needs regulatory approvals in the four countries where MB Petroleum Services operates. ADNOC Drilling expects to complete the acquisition in the first half of 2026, assuming those approvals come through. That timeline suggests the regulatory process could be complex, given the strategic nature of energy services in the region.