Very usefull links


News links




Dow Jones

Oil price



Views and News





Baker Hughes pay $550 million for 5 pct of ADNOC Drilling



By Rania El Gamal and Ron Bousso

Petroleumworld 10 09 2018

Baker Hughes, the world's second-largest oil services company, will take a 5 percent stake in Abu Dhabi National Oil Company's (ADNOC) drilling unit for $550 million under a tie-up announced on Monday.

Baker Hughes (BHGE) becomes the first foreign company to take a stake in one of state-owned ADNOC's services companies under the agreement which values ADNOC Drilling at about $11 billion.

It will allow Baker Hughes to cement its presence in the Middle East, the fastest growing region for oil and gas operations, and enable ADNOC Drilling to gain access to the know-how and technical expertise of a global player.

Since its acquisition by General Electric Co last year, Baker Hughes has sought new business models following a sharp decline in global drilling activity since 2014. That includes offering a suite of services to oil and gas producers from exploration to drilling.

“To us this is not just another partnership... this will allow ADNOC Drilling to be not only a local player but a global specialist in the drilling and oil service business,” ADNOC's Chief Executive Sultan al-Jaber told Reuters in an interview in Abu Dhabi.


It would help make ADNOC Drilling “the most efficient and the most competitive,” al-Jaber said.

Baker Hughes' CEO Lorenzo Simonelli said BHGE will have a representative on the board of ADNOC Drilling and will create a dedicated training team.

The partnership will offer drilling services in the UAE and possibly abroad as well, al-Jaber said.

The transaction is expected to close before the end of this year, with operations starting in 2019, ADNOC and BHGE said in a joint statement.

Al-Jaber said “there are no plans at this point of time” to float a stake in ADNOC Drilling.

While analysts said the deal would bode well for Baker Hughes' long-term prospects in the United Arab Emirates, some lamented that the firm was paying too high a price in its acquisition.

“We're just not fans of OFS (oilfield service) companies having to ante up” to tap into revenue growth, analysts for investment firm Tudor Pickering Holt & Co wrote in a note on Monday.

Shares of Baker Hughes were down roughly 1 percent at midday on Monday, trading around $31.65.

Moelis is acting as the financial adviser to ADNOC on the transaction, while Citi is the adviser to BHGE, the two companies said in the statement.


Story by Rania El Gamal and Ron Bousso; Reporting by Rania El Gamal Additional reporting by Liz Hampton in Houston Editing by Susan Fenton and Chizu Nomiyama from Reuters. 10 08 2018


We invite all our readers to share with us
their views and comments about this article.
Write to

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to:

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1

November 13 - 15, 2018.

Gubkin University, Moscow
SPE Student Chapter









Editor & Publisher:Elio Ohep/
Contact Email:

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.