ADNOC Drilling, the drilling subsidiary of the Abu Dhabi National Oil Company, is projecting significant growth with anticipated investments exceeding $1 billion in 2025. The company's chief financial officer, Youssef Salem, announced plans to extend operations into Oman and Kuwait during an interview at the Capital Markets Forum.

According to Salem, ADNOC Drilling is confident in the long-term operational strategies of companies in those countries.

Kuwait Oil Company is targeting a production capacity of 4 million barrels of oil per day, including the initiation of its offshore operations.

Meanwhile, Oman is expected to undertake numerous tenders for new rigs to enhance its drilling fields.

The expansion into these Gulf territories, coupled with existing operations in Jordan, is supported by strong relationships with local operators and has seen ADNOC Drilling secure pre-qualifications with these entities.

The company is focusing on organic growth through partnerships and joint ventures with established regional firms.

Salem highlighted the lucrative nature of these markets, noting that Kuwait is set to increase its fleet to 200 rigs while Oman aims for 100 rigs, suggesting that these markets combined are nearly three times the size of the UAE's rig market.

In terms of revenue, the onshore segment is projected to exceed $2 billion, the offshore segment is expected to surpass $1.4 billion, and oil field services may exceed $1.2 billion, reflecting approximately 50% year-on-year growth.

The planned investments include $350 million to $550 million allocated for additional rigs and oil field service equipment within the UAE, part of a roadmap to expand to 151 rigs by 2028. An additional $700 million is earmarked for Enersol, a joint venture focused on global energy technology investments, particularly in artificial intelligence.

Last year, ADNOC Drilling completed four acquisitions valued at $800 million and has further acquisitions totaling $700 million planned for 2025. In 2024, the company achieved record revenues of $4 billion, with the onshore segment contributing $1.9 billion from 95 land rigs, the largest for onshore operations in the Middle East and North Africa, and the offshore segment generating $1.3 billion from 47 offshore rigs, marking the highest revenue in that category.

The oil field services segment, growing more than 100% year-on-year, contributed $100 million in the fourth quarter.

The Capital Markets Forum also provided ADNOC Drilling the opportunity to engage with both Saudi and global investors, a key element underscored by Salem.

He noted that ADNOC Drilling’s stock is the most covered in the UAE, with 18 analysts following it, and it holds the highest number of buy recommendations in the region.

Salem remarked on the increasing significance of the Saudi financial sector, identifying the presence of leading banks and robust market activities in the Kingdom.

Concurrently, he stated that the Abu Dhabi Exchange is among the fastest-growing exchanges globally.

ADNOC Drilling's commitment to operations in Saudi Arabia was highlighted, including collaborations with Saudi Aramco through subsidiaries such as EV, which offers smart drilling technology, and NTS, which manufactures drilling and service equipment.

As for a potential dual listing on the Saudi Exchange, Salem indicated that the primary focus remains on the Abu Dhabi Exchange, where the company enjoys substantial liquidity.

Daily trading exceeds $20 million, which allows investment opportunities for major Saudi sovereign wealth funds and asset managers.