Abu Dhabi, UAE – ADNOC Drilling announced on Monday the completion of a deal to acquire an 80% stake in MBBS Petroleum Services with MB Holding Company.
MBBS Joint Venture is a company specializing in drilling and oilfield services, operating in the Sultanate of Oman, Kuwait, Saudi Arabia and Bahrain.
implementation efficiency
The deal was completed ahead of schedule in mid-2026, reflecting efficient implementation, discipline, and high levels of coordination between the two parties.
Under the agreement, ADNOC Drilling, through its wholly-owned subsidiary, owns an 80% stake in MBBS, while MB Holding maintains a 20% stake, through its subsidiary.
ADNOC Drilling will integrate the full financial results of the joint venture for 2026, with all its provisions, into the results of its onshore drilling sector, starting from the date of completion of the deal. Note that ADNOC Drilling Company has included the financial results of the joint project in the guidelines for the fiscal year 2026. Which I announced earlier. Fiscal year 2027 will be the first year to see the joint venture contribute to the results of the entire fiscal year.
The portfolio, acquired by ADNOC Drilling, includes 22 excavators and maintenance excavators, production service units, in addition to pre-qualifications, subsidiaries, and an established presence in four promising geographical areas in the Gulf countries region.
Mergers and acquisitions management
This acquisition is in line with ADNOC Drilling’s disciplined strategy in managing mergers and acquisitions, which focuses on acquiring companies characterized by high operational efficiency, promising growth opportunities, and a clear vision for their activities in the long term.
Through this approach, the company seeks to maximize the value generated from this transaction through effective ownership and the application of established governance frameworks. Achieving sustainable performance, while maintaining the joint venture as an independent and self-contained organizational structure.
The total institutional value of the joint venture is AED 749.2 million, and it is expected to contribute to enhancing profits, cash flows and returns, while achieving an internal rate of return that is not financed by borrowing higher than the company’s local rate, according to the framework agreement.
This deal was based on MBBS’s strong operational performance record, as its performance during 2025 demonstrated high levels of efficiency and discipline, in line with ADNOC Drilling’s approach in the areas of safety, operational efficiency and cost management.
By comparison, the company’s revenues during the fiscal year 2025 amounted to approximately AED 734.6 million. While the EBITDA margin recorded a level of approximately 30%.
During the first quarter of 2026, MBBS recorded an outstanding performance that exceeded expectations. Strong cash flows were 20% higher and net profit was 40% higher compared to previous rates.
In January 2026, MBBS obtained contracts to operate four additional drilling rigs, three of which are in the State of Kuwait and one in the Sultanate of Oman. Operations are expected to begin during the period from the second half of 2026 to the first half of 2027, which will contribute to supporting the company’s growth and enhancing clarity of vision regarding its long-term activities in important geographical areas in the Gulf region.
