ADNOC Abu Dhabi is considering listing the drilling activity on the local stock exchange


Three informed sources said, “The Abu Dhabi National Oil Company (ADNOC) is considering listing its drilling activity on the local stock exchange,” according to “Reuters”.
The sources, who declined to be identified because the matter is not public, said, “ADNOC has held discussions with banks about a possible initial public offering,” noting that its drilling company is the largest in the Middle East.
Two of the sources said, “ADNOC” wants to complete the deal this year, “while one of them stated that the discussions are at an early stage, but that the size of the initial public offering may exceed one billion dollars.
If the operation takes place, it will be the second listing by the oil company of a unit on the Abu Dhabi Stock Exchange, after ADNOC Distribution was listed in late 2017 and raised 3.1 billion dirhams ($ 844 million).
ADNOC, which supplies about 3 percent of global oil demand, has also sold stakes in its pipeline infrastructure and refining activities to international companies and investors.
ADNOC Drilling owns and operates a large fleet of rigs, including 75 land rigs, 20 offshore rigs and 11 rigs dedicated to working on artificial oil islands, according to its website.
Activity is important to ADNOC’s upstream operations as it helps the oil company achieve its production targets.
The potential deal comes as the world’s largest oil and gas companies seek to control costs in light of the Corona virus crisis that has hit oil demand and prices.
“A transformation strategy launched four years ago has helped the company adapt more quickly to market changes, and it will continue to work with strategic investors to attract foreign capital and maximize the value of its resources,” said Sultan Al Jaber, CEO of ADNOC.
The Abu Dhabi National Oil Company “ADNOC” announced the signing of a strategic cooperation agreement with the Malaysian “Petronas” company to explore cooperation opportunities between the two sides in various fields and stages of business in the oil and gas sector.
In a previous statement, ADNOC said, “This agreement, which is the first of its kind between the two companies, contributes to strengthening the strong bilateral relations between the UAE and Malaysia.”
The statement quoted Sultan Ahmed Al-Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its Group of Companies, as saying, “The agreement provides many potential opportunities for the two companies to enhance and create value in various areas and stages of business in the value chain in the oil and gas sector, especially during this period of time. We start preparing for the post-Corona stage. “
Under the agreement, ADNOC and Petronas will explore cooperation opportunities in the exploration, development and production of conventional and unconventional hydrocarbon resources in the Emirate of Abu Dhabi, which confirms the great potential of the huge untapped oil and gas resources in Abu Dhabi, and reflects ADNOC’s approach to benefit from Strategic partnerships to accelerate exploration and development processes.
The two companies will jointly evaluate strategic opportunities for cooperation at the local and international levels in the refining and petrochemical sector, such as bunkering and supporting LNG carriers. ADNOC and Petronas also agreed to explore potential partnership opportunities in the field of petroleum products trading and trading.


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