Enersol, the joint venture between Abu Dhabi companies Adnoc Drilling and Alpha Dhabi Holding, aims to achieve its goal of investing $1.5 billion in technology-driven companies within the oilfield services sector by the end of next year, a senior official said.
The company, which has already committed $550 million towards acquisitions, plans to spend the remaining funds over the next 12 months if it can successfully hit all the mergers and acquisitions targets in its pipeline, Khalil Massoud, chief investment officer at Alpha Dhabi Holding, told The National.
“We've got … an active pipeline. But, sometimes M&A deals take time to complete. Some of them end up closing [and] some of them, for whatever reason, may or may not materialise,” Mr Massoud said.
Enersol has been considering acquisition targets that are “extremely cash generative”, with low debt, and these companies are also exploring bolt-on acquisitions to grow their own operations, Mr Massoud added.
Launched in January, Enersol is a tech-centric investment platform aimed at bolstering Adnoc Drilling’s fast-growing oilfield services business, which makes up about 17 per cent of the company’s revenue.
In June, Enersol became a majority shareholder in US-based Gordon Technology, which specialises in measurement while drilling (MWD) technology. MWD helps oil and gas companies collect and send important real-time data during drilling operations.
In July, Enersol said it would acquire a 51 per cent stake in UAE-based NTS Amega – a manufacturer of advanced precision equipment.
Each deal needs to be financially attractive and viable when viewed from a traditional investment perspective, Youssef Salem, Adnoc Drilling’s chief financial officer told The National.
“It has to be a strategic deal in the sense that [it needs to be] synergistic and complementary within the portfolio [to ensure that] Enersol will evolve from being an investment platform into a tech-enabled provider in its own might,” Mr Salem said.
“We've identified a value chain for Enersol that [spans] from drilling to completion to production – the full suite of services [related] to [oil wells],” he said.
Mr Massoud stressed the need for a balanced approach to ensure Enersol's resilience in the face of oil price volatility and spending cuts by clients.
“Having a balanced portfolio of assets [is crucial] … from a geographic perspective [as well]. Although we're buying North America and Europe-heavy companies, we expect the Mena component to increase significantly over time,” he added.
Diversification push
Enersol is part of Adnoc Drilling’s efforts to offer more services and capture a larger market share, Mr Salem said.
The Adnoc subsidiary’s oilfield services sector has grown since Baker Hughes took 5 per cent in the company for $550 million in 2018. It was the first time Adnoc sold a direct interest in one of its services units to an international company.
“Starting in 2019, we started to expand the suite of services that we offer, and we effectively launched our oilfield services division in partnership with Baker Hughes,” Mr Salem said.
The US oilfield services giant “contributed some of the initial people, capabilities, technology and equipment off the back of which we initiated our oilfield services [business]”, Mr Salem said.
Adnoc Drilling recently partnered with Schlumberger, the largest oilfield services company globally, and drilling services firm Patterson-UTI to set up a joint venture named Turnwell Industries, aimed at boosting the UAE’s unconventional oil and gas programme.
Through Enersol, Adnoc Drilling aims to elevate its oilfield services business to the “next level” by expanding service offerings, increasing margins by owning a larger share of the supply chain, and “futureproofing” the business by securing critical intellectual property and patents, Mr Salem said.
Global energy businesses and national oil companies, especially in the Middle East, are increasing spending to develop their hydrocarbon reserves, driven by high oil prices over the past two years. Upstream oil and gas investment is expected to rise by 7 per cent this year to reach $570 billion, following a similar rise in 2023, according to the International Energy Agency.
“The growth in spending in 2023 and 2024 is predominantly by national oil companies in the Middle East and Asia,” the IEA said in a June report.
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The Florida Project
Director: Sean Baker
Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe
Four stars
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
Groom and Two Brides
Director: Elie Samaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Results:
First Test: New Zealand 30 British & Irish Lions 15
Second Test: New Zealand 21 British & Irish Lions 24
Third Test: New Zealand 15 British & Irish Lions 15
Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
If you go
The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
more from Janine di Giovanni
APPLE IPAD MINI (A17 PRO)
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Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
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The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
Read more from Mina Al-Oraibi
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
