ADNOC Drilling completes the deal for the joint venture “MB Petroleum Services”

ADNOC Drilling Company PJSC (“ADNOC Drilling” or the “Company”), listed on the Abu Dhabi Securities Market under the symbol (ADNOCDRILL) and international identification number (AEA007301012), announced today the completion of the acquisition of an 80% stake in “MB Petroleum Services” (MBPS), with “MB Holding”.

MBBS (the joint venture) is a drilling and oilfield services company with operations in the Sultanate of Oman, Kuwait, Saudi Arabia and Bahrain.

The deal was completed before its previously scheduled date in mid-2026, which reflects the efficiency of implementation, discipline and high levels of coordination between the two parties.

On this occasion, Abdullah Attiya Al Musabi, CEO of ADNOC Drilling and Chairman of the Board of Directors of MBPS, said: “The completion of the acquisition of MBBS will enhance the operational capabilities of ADNOC Drilling at the regional level in the long term, by adding an existing operational scope and advanced field implementation capabilities within the region. This achievement supports the company’s efforts towards building a sustainable platform for providing its services in the GCC region, by taking advantage of the combination of MB’s operational presence.” BS’ with ADNOC Drilling’s extensive business scale, advanced systems, and technology-driven operational approach.”

He added: “This step came within the framework of ADNOC Drilling’s disciplined growth strategy aimed at achieving and enhancing value, while the company continues to invest in developing human competencies and building sustainable operational capabilities at the regional level, while enhancing commitment to the highest safety standards in all its activities and operations. We are also working to enhance the consistency of operations and raise levels of safety and efficiency of implementation by expanding the integration of automation technologies, artificial intelligence, digital systems, and data systems that organize workflow and flow.”

Osama Al Barwani, a member of the Board of Directors of MBBS and Vice Chairman of the Board of Directors of MB, LLC, said: “Through years of hard work and continuous achievements, MBBS has been able to build a strong institutional legacy that has contributed to consolidating its position among the leading companies in the field of energy services in the region.

Our partnership with ADNOC Drilling is one of the achievements that we will build on, as it reflects the high levels of agreement between the partners and their mutual confidence in the long-term potential of MBPS. We are confident that cooperation with ADNOC Drilling will support our efforts towards implementing our strategy for future expansion and continuing to provide distinguished services to our customers and investing in human resources.”

Under the agreement, ADNOC Drilling, through its wholly-owned subsidiary, owns an 80% stake in MBBS, while MB Holding retains a 20% stake, through its subsidiary. MBBS will continue its work under the leadership of Dr. Salem Al Harithi, the company’s CEO, to ensure business continuity, maintain distinguished levels of implementation, and benefit from his extensive experience in the region.

For his part, Dr. Salem Al Harithi, CEO of MBBS, said: “This acquisition represents a qualitative achievement for us at MBBS. By combining our well-established operational expertise at the regional level and the strength and size of ADNOC Drilling, we will work to build a more solid platform for expansion in the Middle East and North Africa region, enhance our operational capabilities, and provide greater value to our customers. With our continued commitment to our employees and partners, and raising the levels of operational excellence, which are the values that have shaped the criteria for our success. in ‘MBBS’ over the past years.”

ADNOC Drilling will fully incorporate the financial results of the joint venture for the year 2026, in all its terms, into the results of its onshore drilling sector, starting from the date of completion of the deal. Note that ADNOC Drilling has included the joint project’s financial results within the directives for the fiscal year 2026, which it announced earlier. The fiscal year 2027 will be the first year that the joint project will contribute to the results of the entire fiscal year. The portfolio, which was acquired by ADNOC Drilling, includes 22 rigs, maintenance rigs, and production service units, in addition to pre-qualifications, subsidiaries, and an established presence in four promising geographical areas in the Gulf region.

This acquisition is in line with ADNOC Drilling’s disciplined strategy in managing mergers and acquisitions, which focuses on acquiring companies characterized by high operational efficiency, promising growth opportunities, and a clear vision for their activities in the long term. Through this approach, the company seeks to maximize the value achieved from this deal through effective ownership, applying solid governance frameworks, and achieving sustainable performance, while maintaining the joint venture as an independent and self-contained organizational structure.

The total enterprise value of the joint project is 749.2 million dirhams, and it is expected to contribute to enhancing profits, cash flows and returns, while achieving an internal rate of return not financed by borrowing that is higher than the company’s local rate, according to the framework agreement. This deal was based on MBPS’ strong operational performance record, as its performance during 2025 demonstrated high levels of efficiency and discipline, in line with ADNOC Drilling’s approach to safety, operational efficiency and cost management. For comparison, the company’s revenues during the fiscal year 2025 amounted to about 734.6 million dirhams, while the earnings margin before interest, taxes, depreciation and amortization (EBITDA) recorded a level of approximately 30%.

During the first quarter of 2026, MBBS recorded an outstanding performance that exceeded expectations, as it achieved strong cash flows that were 20% higher and net profits that were 40% higher compared to previous rates. In January 2026, MBBS obtained contracts to operate four additional rigs, three of which were in the State of Kuwait and one in the Sultanate of Oman. It is expected that operations will begin during the period from the second half of 2026 to the first half of 2027, which will contribute to supporting the company’s growth and enhancing the clarity of vision regarding its long-term activities in important geographical areas in the Gulf region.