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.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
The%20specs
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Meydan racecard:
6.30pm: Handicap | US$135,000 (Dirt) | 1,400 metres
7.05pm: Handicap | $135,000 (Turf) | 1,200m
7.40pm: Dubai Millennium Stakes | Group 3 | $200,000 (T) | 2,000m
8.15pm: UAE Oaks | Group 3 | $250,000 (D) | 1,900m
8.50pm: Zabeel Mile | Group 2 | $250,000 (T) | 1,600m
9.20pm: Handicap | $135,000 (T) | 1,600m
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
Mohammed bin Zayed Majlis
UAE currency: the story behind the money in your pockets
QUALIFYING RESULTS
1. Max Verstappen, Netherlands, Red Bull Racing Honda, 1 minute, 35.246 seconds.
2. Valtteri Bottas, Finland, Mercedes, 1:35.271.
3. Lewis Hamilton, Great Britain, Mercedes, 1:35.332.
4. Lando Norris, Great Britain, McLaren Renault, 1:35.497.
5. Alexander Albon, Thailand, Red Bull Racing Honda, 1:35.571.
6. Carlos Sainz Jr, Spain, McLaren Renault, 1:35.815.
7. Daniil Kvyat, Russia, Scuderia Toro Rosso Honda, 1:35.963.
8. Lance Stroll, Canada, Racing Point BWT Mercedes, 1:36.046.
9. Charles Leclerc, Monaco, Ferrari, 1:36.065.
10. Pierre Gasly, France, Scuderia Toro Rosso Honda, 1:36.242.
Eliminated after second session
11. Esteban Ocon, France, Renault, 1:36.359.
12. Daniel Ricciardo, Australia, Renault, 1:36.406.
13. Sebastian Vettel, Germany, Ferrari, 1:36.631.
14. Antonio Giovinazzi, Italy, Alfa Romeo Racing Ferrari, 1:38.248.
Eliminated after first session
15. Antonio Giovinazzi, Italy, Alfa Romeo Racing Ferrari, 1:37.075.
16. Kimi Raikkonen, Finland, Alfa Romeo Racing Ferrari, 1:37.555.
17. Kevin Magnussen, Denmark, Haas Ferrari, 1:37.863.
18. George Russell, Great Britain, Williams Mercedes, 1:38.045.
19. Pietro Fittipaldi, Brazil, Haas Ferrari, 1:38.173.
20. Nicholas Latifi, Canada, Williams Mercedes, 1:38.443.
Results
Women finals: 48kg - Urantsetseg Munkhbat (MGL) bt Distria Krasniqi (KOS); 52kg - Odette Guiffrida (ITA) bt Majlinda Kelmendi (KOS); 57kg - Nora Gjakova (KOS) bt Anastasiia Konkina (Rus)
Men’s finals: 60kg - Amiran Papinashvili (GEO) bt Francisco Garrigos (ESP); 66kg - Vazha Margvelashvili (Geo) bt Yerlan Serikzhanov (KAZ)
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
Stuck in a job without a pay rise? Here's what to do
Chris Greaves, the managing director of Hays Gulf Region, says those without a pay rise for an extended period must start asking questions – both of themselves and their employer.
“First, are they happy with that or do they want more?” he says. “Job-seeking is a time-consuming, frustrating and long-winded affair so are they prepared to put themselves through that rigmarole? Before they consider that, they must ask their employer what is happening.”
Most employees bring up pay rise queries at their annual performance appraisal and find out what the company has in store for them from a career perspective.
Those with no formal appraisal system, Mr Greaves says, should ask HR or their line manager for an assessment.
“You want to find out how they value your contribution and where your job could go,” he says. “You’ve got to be brave enough to ask some questions and if you don’t like the answers then you have to develop a strategy or change jobs if you are prepared to go through the job-seeking process.”
For those that do reach the salary negotiation with their current employer, Mr Greaves says there is no point in asking for less than 5 per cent.
“However, this can only really have any chance of success if you can identify where you add value to the business (preferably you can put a monetary value on it), or you can point to a sustained contribution above the call of duty or to other achievements you think your employer will value.”
