Abu dhabi: ADNOC Drilling targets a new revenue structure, aiming for an even split between drilling operations and manufacturing and services within five years. Youssef Salem, Chief Financial Officer at ADNOC Drilling, outlined this strategic plan to enhance local manufacturing and diversify income sources.
According to Emirates News Agency, Salem emphasized the company's focus on increasing local content in the industrial sector during the Make it in the Emirates 2026 platform event. ADNOC Drilling has signed three agreements with local and international firms, including ADNOC Refining and other global companies, to boost oil equipment manufacturing within the UAE. This initiative is expected to cut costs, improve operational efficiency, and support supply chains by localizing the production of critical equipment like drilling tools and measurement services for domestic use and international export.
Salem highlighted ADNOC Drilling's expanding international presence, with about 30 rigs currently operating in regional markets out of a total fleet of 170 rigs. He revealed the completion of two strategic acquisitions abroad. The first acquisition involved Oman and Kuwait business stakes in January, while the second acquisition included 80 percent of Mohamed Al Barwani Oil Services, adding around 22 new rigs and increasing the total number of rigs outside the UAE to approximately 30.
The company's current revenues stand at around US$5 billion, with $3.5 billion from drilling activities and $1.5 billion from oilfield services and manufacturing, accounting for nearly 30 percent of total revenues. Salem noted that this share is expected to rise under future plans.
In terms of operational performance, Salem confirmed that the company anticipates meeting its targets, supported by a flexible business model and reliance on long-term contracts. Additionally, ADNOC Drilling is continuing its expansion, aligning with the UAE's goal to increase production capacity. Over the next two years, six new rigs are expected to be added within the UAE and four outside the country.
