Abu Dhabi National Oil Company “ADNOC” announced today, Monday, its intention to offer a 7.5% stake in the shares of “ADNOC Drilling” for an initial public offering on the Abu Dhabi Securities Exchange.
The subscription will be open to citizens and residents of the UAE and to local and international investment institutions, which is expected to begin on September 13, while the shares are expected to begin trading on the Abu Dhabi Securities Exchange in October 2021.
Regarding the details of the offer, all the shares offered will be sold by the existing shares owned by ADNOC and the shares offered will be made available to individuals and other investors as part of the offer to individuals in the UAE. United States, as well as to qualified investors as part of the offer to qualified investors, while 5% of the shares offered will be reserved for the benefit of the IPO. Emirates Investment.
The offering includes 1.2 billion shares of the company’s capital in three tranches.
Interestingly, all the shares will be offered by ADNOC, which holds 95% of the capital of ADNOC Drilling, prior to the offering. ADNOC will receive the net proceeds of the offer.
ADNOC Drilling is one of the most important pillars of the ADNOC Group and a key factor in supporting current crude oil production rates and increasing production capacity by 25% to reach 5 million barrels per day and produce one billion cubic feet per day. of unconventional gas by 2030.
Opportunity for expansion and growth
The UAE ranks sixth globally in the list of countries with the highest oil reserves, with conventional oil reserves of 107 billion barrels of recoverable oil, which increases the opportunities for expansion and sustainable growth of drilling in future.
ADNOC Drilling is also a key element in achieving gas self-sufficiency for the UAE and achieving the goal of producing one billion cubic feet per day of unconventional gas by 2030.
The UAE has proven gas reserves of 273 trillion cubic feet of conventional gas, 160 trillion cubic feet standard of unconventional gas resources and estimated unconventional oil resources in about 22 billion barrels, which requires drilling new wells to extract them.
Through this proposed offer of a minority stake in ADNOC Drilling, ADNOC offers an attractive investment opportunity that allows investors to benefit from the continued development and strong growth of ADNOC Drilling, which is an important component of ADNOC’s operations and the hydrocarbon value chain in Abu Dhabi. ADNOC Drilling also has a long-term contractual relationship with the companies of the ADNOC Group in the field of exploration, production and development, which guarantees the continuity and stability of its operations. in various circumstances.
ADNOC Drilling is the largest national drilling company in the Middle East in terms of fleet size of platforms and equipment, with a total of 96 onshore, offshore and artificial island platforms. Thanks to its strategic partnership with Baker Hughes in 2018, ADNOC Drilling has become the first national company in the region to provide integrated services for drilling and preparation of wells and a full range of drilling and drilling services, providing opportunities for growth and expansion. of one’s own business outside the United Arab Emirates.
In the period between 2018 and May 2021, the company was in able to supply more than 180 wells, increase efficiency by approximately 50% and achieve savings of over 767 million dirhams (210 million dollars).
ADNOC Drilling plays an important role in supporting the achievement of ADNOC’s objectives in the field of environmental, social and corporate governance, as it continues to focus on reducing emissions intensity by 25% by 2030 by improving operational efficiency and efficiency energy. key contributor to increasing the value of Murban crude, which is one of the least carbon intensive minerals in the world.
ADNOC has worked for the past five years to improve the management of its portfolio of assets and capital, and this strategy which focuses on creating and increasing value is made possible by a capital investment program of 447.7 billion dirhams. ($ 122 billion) for the period from 2021 to 2025.
With the listing of minority shareholdings in some of its companies operating in the stock markets, ADNOC was in able to gain better access to capital and a larger investor base in many aspects of its business portfolio, while supporting the growth and expansion of the private sector and capital markets in the UAE.
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