ADNOC Drilling, Alpha Dhabi form joint venture

Abu Dhabi National Oil Company (ADNOC) subsidiary, ADNOC Drilling, and Alpha Dhabi have established a joint venture (JV) with the incorporation taking place at Abu Dhabi Global Market, ADNOC said on January 9.

The primary focus of this JV will be to pursue global investments in energy technology and enhance tech-enabled energy services. 

As the initial investment under this collaboration, Alpha Dhabi has contributed a 25% equity stake in Gordon Technologies, valued at approximately $180mn. Gordon Technologies is a provider of Measurement While Drilling (MWD) technology to the oil and gas industry in the US.

The incorporation of the JV and the inclusion of Gordon's equity stake are anticipated to yield value accretive returns for both ADNOC Drilling and Alpha Dhabi, ADNOC said. 

Founded in 2014, Gordon Technologies holds a position as a key MWD technology provider in the U.S., boasting robust positions in its key operating basins and expecting revenue to exceed $230mn in the fiscal year 2023.

ADNOC Drilling holds the majority stake of 51% in the JV, as disclosed on November 10, 2023, with Alpha Dhabi holding the remaining 49%, ensuring equal representation on the board for both entities. The JV's financial results will be accounted for by ADNOC Drilling through the equity method starting from the company's first-quarter 2024 financial results.

The JV plans to acquire and invest in companies offering tech-enabled oilfield services solutions, subject to regulatory approvals.