Abu Dhabi – Mubasher: A joint venture (JV) between ADNOC Drilling Company and Alpha Dhabi Holding has completed its first strategic investment at the Abu Dhabi Global Market.
The joint entity seeks to pursue global investments in energy technology and bolster tech-enabled energy services, according to a press release.
Valued at nearly $180 million, Alpha Dhabi contributed its 25% equity stake in US-based Gordon Technologies, a provider of measurement while drilling (MWD) technology to the oil and gas industry.
The transaction is expected to bring value accretive returns to both shareholders and will back ADNOC Drilling’s long-term dividend growth profile.
ADNOC Drilling holds a 51% stake in the JV, while the remaining 49% equity ownership is owned by Alpha Dhabi.
The JV’s financial results will be accounted for by ADNOC Drilling through the equity method starting from the first quarter (Q1) of 2024.
Subject to the relevant regulatory approvals, the combined entity plans to acquire and invest in companies offering tech-enabled oilfield services solutions.
It also intends to foster a scalable ecosystem that will enhance market value and boost operational efficiencies, backing the UAE’s wider energy transition ambitions as well as net zero agenda.
Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, said: “Through the incorporation of our JV, we are set to accelerate investment in tech-enabled energy solutions.”
“Access to these technologies will support us in our operations, and accelerate well delivery optimization in the development of unconventional resources as we strive to enable gas self-sufficiency for the nation,” Al Seiari underlined.
Hamad Al Ameri, Managing Director and Group CEO of Alpha Dhabi, added: “Since Alpha Dhabi’s minority stake acquisition of Gordon Technologies in 2022, we have supported its growth strategy in the US market and put the foundations in place for expansion to the Middle East region.”
Founded in 2014, Gordon is one of the leading MWD technology providers in the US, with expected revenue of more than $230 million in 2023.
In the first nine months (9M) of 2023, ADNOC Drilling registered an annual surge of 24% in net profit to $704 million, compared to $568 million.
The net profits attributable to the owners of Alpha Dhabi hiked to AED 9.75 billion in 9M-23 from AED 6.79 billion in 9M-22.
