ADNOC Drilling targets 50% revenue from manufacturing, services within five years

KNABU DHABI: Youssef Salem, Chief Financial Officer at ADNOC Drilling, affirmed that the company aims over the next five years to achieve a balanced revenue structure, with around 50 percent generated from drilling operations and 50 percent from manufacturing and related value-added services, as part of its strategy to strengthen local manufacturing and diversify income sources.Salem told the Emirates News Agency (WAM) on the sidelines of the Make it in the Emirates 2026 platform that ADNOC Drilling’s participation reflects its focus on increasing local content in the industrial sector. He noted that the company signed three agreements with local and international firms, including ADNOC Refining and global companies, to expand the scope of oil equipment manufacturing within the UAE.He explained that enhancing local manufacturing contributes to reducing costs, improving operational efficiency, and supporting supply chains. He added that the company is working to localise the production of key equipment such as drilling tools and measurement services, enabling their use domestically and export to international markets.He noted that ADNOC Drilling has an expanding presence outside the UAE, currently operating around 30 rigs in regional markets out of a total fleet of 170 rigs.He revealed that ADNOC Drilling recently completed two strategic acquisitions abroad. The first involved acquiring the Oman and Kuwait business stakes in January, while the second included acquiring 80 percent of Mohamed Al Barwani Oil Services, adding around 22 new rigs and bringing the total number of rigs outside the UAE to approximately 30.He added that the company’s revenues stand at around US$5 billion, including $3.5 billion from drilling activities, while oilfield services and manufacturing contribute around $1.5 billion, representing nearly 30 percent of total revenues. He noted that this share is expected to increase under future plans.Regarding operational performance, Salem affirmed that the company expects to achieve results in line with its targets, supported by the flexibility of its business model and its reliance on long-term contracts.He added that the company continues its expansion plans, driven by the UAE’s targeted increase in production capacity, with six new rigs expected to be added within the UAE and four outside the country over the next two years.Article Source: Emirates News Agency (WAM)Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.