Monday, September 20, 2021

UAE oil producer ADNOC plans to divest stake in drilling unit

UAE oil producer ADNOC plans to divest stake in drilling unit
ADNOC Drilling aims to increase crude oil production capacity to five million barrels per year by 2030. Credit: John R Perry / Pixabay.

Abu Dhabi National Oil Company (ADNOC) is planning to divest at least a 7.5% stake in drilling subsidiary ADNOC Drilling through an initial public offering (IPO).

ADNOC intends to float the drilling unit’s issued share capital on the Abu Dhabi Securities Exchange (ADX).

The listing is a part of the firm’s plan to increase capital and create a broader investor base.

<!–

–>

The offering, which is ADNOC’S second public flotation after it listed ADNOC Distribution in 2017, is open to institutional and individual investors.

It is also open to employees of ADNOC Group Companies and ADNOC Group UAE national retirees, as well as qualified institutional and other investors.

ADNOC said that 5% of the offering will be reserved for the Emirates Investment Authority.

UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO Dr Sultan Ahmed Al Jaber said: “This highly compelling offering, in a company with a robust growth trajectory and attractive dividend policy, is open to all citizens and residents of the UAE in addition to international and local institutional investors.

“Building on the highly successful listing of ADNOC Distribution in 2017, this offering marks another significant milestone in ADNOC’s ongoing journey in unlocking and maximizing value across our integrated asset base.”

Post-IPO, ADNOC will retain a majority stake in the drilling unit in which Baker Hughes holds 5% of the share capital.

The offering is also a part of ADNOC’s plan to actively manage and optimise its assets portfolio while creating new investment opportunities across its business.

Subject to regulatory approvals in the UAE, completion of the IPO is expected in October 2021.

By 2030, ADNOC Drilling aims to increase crude oil production capacity to five million barrels per year and unconventional gas capacity to one billion cubic feet per day.

Related Posts

Comments

Stay Connected

22,044FansLike
0FollowersFollow
0SubscribersSubscribe

Recent Stories