ADNOC Drilling buys into SLB's Oman and Kuwait rig business
1. ADNOC Drilling will acquire 70% of SLB's onshore rig business for $112 million. 2. A new joint venture aims to double its operations in the next year.
FAQ
Why Bullish?
The acquisition can stabilize SLB’s operations and enhance revenue from joint ventures. Historically, similar deals in oil services have led to positive stock performance due to increased capacity or market reach.
How important is it?
The substantial investment from ADNOC Drilling signifies confidence in SLB's operations. This joint venture could significantly impact SLB's market share and future earnings potential.
Why Short Term?
The immediate financial implications will be seen as the joint venture is operationalized. Short-term gains are plausible as ADONC expands its services and integrates SLB's assets.