U.S. contract oil and gas driller Helmerich & Payne (H&P) will invest $100 million in the initial public offering (IPO) of Abu Dhabi National Oil Company's drilling unit, the companies said in a joint statement.
The cornerstone investment by H&P will be at the IPO price and is subject to a three-year lock-up, ADNOC and H&P said in the statement.
The deal is part of a strategic alliance, the companies said, that will also see ADNOC Drilling acquire eight land rigs from H&P for $86.5 million, which will be delivered and commissioned over a 12-month period.
ADNOC said the strategic alliance and rig acquisition will support its target of reaching 5 million barrels per day (mbpd) production capacity and gas self-sufficiency for the UAE by 2030, along with plans to unlock its unconventional oil and gas resources.
ADNOC, which supplies nearly 3% of global oil demand, earlier this week announced its intention to offer a 7.5% minority stake in ADNOC Drilling through an IPO and subsequent listing on the Abu Dhabi Securities Exchange.
For H&P, these agreements help facilitate its goal of allocating capital internationally, particularly in the MENA region, by accelerating its access into the fast-growing Abu Dhabi market.
Investment bank Moelis & Co. acted as exclusive financial advisor to ADNOC, while Morgan Stanley & Co. LLC acted as exclusive financial advisor to H&P.
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