ADNOC Drilling secures foothold in Oman onshore market

ADNOC Drilling has formally entered Oman’s onshore drilling services sector, marking a strategic expansion beyond its core home market after completing the purchase of a controlling stake in a land-rig joint venture with SLB that operates six rigs in the sultanate. The move positions the company to participate more directly in Oman’s upstream development plans at a time when regional producers are prioritising operational efficiency, drilling intensity and long-term capacity growth.

In a filing to the Abu Dhabi Securities Exchange dated January 1, 2026, ADNOC Drilling said its wholly owned subsidiary, ADH RSC Ltd, had completed the acquisition of 70% of SLDC Holdings RSC Ltd. The holding company is the joint-venture vehicle established with SLB to conduct land drilling operations in Oman and Kuwait.

The transaction confirms ADNOC Drilling’s transition from a domestically focused contractor into a regional drilling services player. By securing majority control, the company gains operational oversight of six land rigs currently active in Oman, giving it immediate scale and an established client footprint in a market that has been steadily expanding its drilling programmes across both conventional and tight reservoirs.

Company disclosures indicate the joint venture was structured to combine ADNOC Drilling’s operational scale and capital strength with SLB’s drilling technologies, digital tools and well delivery expertise. Executives have previously described the partnership as a platform for exporting ADNOC Drilling’s integrated drilling model into neighbouring markets while maintaining capital discipline and risk-sharing through joint ownership.

Oman has been a consistent destination for international drilling contractors due to the scale and longevity of its onshore assets. The country’s upstream sector, led by Petroleum Development Oman and supported by international partners, has continued to invest in infill drilling, enhanced oil recovery and gas development to sustain output and meet domestic demand. These programmes require a steady supply of modern rigs and experienced crews, creating opportunities for operators able to deliver cost-effective drilling services under long-term contracts.

For ADNOC Drilling, the entry into Oman aligns with a broader strategy to diversify revenues geographically while deepening exposure to higher-margin drilling and integrated services. The company has been expanding its fleet and capabilities across drilling, well completion and associated services, supported by long-term contracts with its parent, the Abu Dhabi National Oil Company, which has provided earnings visibility and balance-sheet strength.

The Oman joint venture also includes operations in Kuwait, giving ADNOC Drilling optionality in another Gulf market with significant onshore drilling requirements. Kuwait’s upstream sector has outlined plans to raise crude production capacity over the medium term, with land drilling forming a core part of those ambitions. While the immediate focus is on consolidating operations in Oman, industry analysts see the structure as a springboard for wider regional expansion.

Market participants note that the timing of the acquisition reflects increasing competition among regional drilling contractors as national oil companies seek efficiency gains and technological sophistication. Drilling service providers with scale, digital capabilities and strong safety records are better positioned to secure multi-year contracts, particularly in mature onshore fields where complex well designs and enhanced recovery techniques are becoming standard.

The transaction also underscores SLB’s evolving approach to regional partnerships. By retaining a minority stake, SLB continues to participate in the upside of land drilling activity while leveraging ADNOC Drilling’s local relationships and operational footprint. The arrangement allows SLB to deploy its technologies through a locally anchored operator, aligning with its asset-light strategy in certain markets.

From a financial perspective, ADNOC Drilling has not disclosed the consideration paid for the 70% stake, but investors have generally viewed overseas expansion through joint ventures as lower-risk than outright acquisitions. The model limits upfront capital exposure while providing access to cash-generating assets and future growth opportunities.