ADNOC Drilling plans to refinance $1.25 billion worth of debt

ADNOC Drilling, a division of the state oil company in the United Arab Emirates, wants to refinance its debt due later this year, totaling $1.25 billion. Its chief financial officer announced that on Friday.

Youssef Salm, the company's CFO, said that it will refinance term loans worth $500 million as well as a revolving loan facility of $750 million due in October 2025.

He said that the capital expenditures for 2025 could be more than $1 billion, including mergers, acquisitions and other activities through its subsidiaries.

It said Thursday that it expects to report a net income of between $1.35 and $1.45 Billion this year.

Salem explained that its 2019 partnership with Baker Hughes, as well as recent deals such a joint ventures Turnwell Industries, and Enersol allowed it to provide oilfield services without any third parties, and to also offer such services abroad.

Turnwell, a joint venture between oilfield service firms SLB, Patterson-UTI and other companies, was established to tap unconventional resources of oil and gas, which require advanced extraction techniques.

Enersol, a joint venture between Alpha Dhabi and Abu Dhabi’s International Holding Company is focused on technology.

Salem explained that Enersol’s technology allowed ADNOC's U.S. footprint to grow, and gave it “exposure to the upside of the market today, particularly when you consider the fact that the level of activity in the United States is increasing significantly."

He added that Enersol has clients from all of the major U.S. Oil companies as well as a few service firms.

ADNOC Drilling is looking to expand in the Middle East. It currently has 142 drilling rigs. Salem stated that the company is looking at opportunities in Kuwait and Oman where it plans to start operating this year.

He added, "We'll be able to see more of this in the coming year, whether it is organic or not, and different bids or tenders.

(source: Reuters)