Abu Dhabi – Mubasher: Baker Hughes on Monday signed an agreement with ADNOC Drilling, the subsidiary of the Abu Dhabi National Oil Company (ADNOC) to acquire a 5% stake in the unit at a value of AED 2 billion ($550 million).
This deal is considered the first which allows a global partner to acquire a stake in ADNOC’s subsidiary, according to the Emirates News Agency (WAM).
Through the deal, Baker Hughes seeks to boost its contribution in the oil industry as a fully integrated drilling and well construction services provider,
ADNOC further noted that it was planning to expand drilling operations by 40% by 2025 and raise the number of unconventional wells.
“This unique partnership with BHE comes at an important time in the drilling needs of Abu Dhabi as ADNOC grows its conventional and unconventional hydrocarbon resources and as we see future potential for further regional growth,” ADNOC’s CEO and minister of state Sultan Ahmed Al Jaber highlighted.
This cooperation will allow Baker Hughes to achieve higher revenues and implement its long-term expansion plans, CEO Lorenzo Simonelli indicated.
“The transaction significantly increases our activity in the region and demonstrates our unique ability to create value for our customers and shareholders through innovative commercial arrangements, partnerships, and leading technology solutions,” Simonelli concluded.
