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SLB (NYSE:SLB) said Thursday that ADNOC Drilling agreed to acquire a 70% stake in its land drilling rigs business in Kuwait and Oman for as much as $112M, creating a joint venture the companies aim to double over the next year.
ADNOC Drilling will pay $91M for the stake, plus another $21M payout to SLB (DLB) linked to business performance, ADNOC Drilling CFO Youssef Salem told Reuters.
The deal includes eight operational onshore rigs – six in Oman and two in Kuwait – under contract with the respective national oil companies of both countries.
The deal marks ADNOC Dilling’s first drilling operations outside the United Arab Emirates, apart from a single rig in Jordan.