The United Arab Emirates' Alpha Dhabi has transferred its 25% interest in Gordon Technologies to a JV with ADNOC Drilling.
The JV, which was incorporated at the Abu Dhabi Global Market, is a strategic move that was initially announced in November 2023.
ADNOC Drilling, a unit of Abu Dhabi National Oil Company (ADNOC), holds a 51% stake in the JV, while Alpha Dhabi owns the remaining 49%.
This transaction represents Alpha Dhabi's inaugural strategic investment in the JV, which aims to invest up to $1.5bn (Dh5.51bn) in technology-driven entities within the oilfield services sector.
As per the announcement, the 25% stake in Gordon Technologies, a US-based oil engineering company, is estimated to be worth around $180m.
Established in 2014, Gordon Technologies specialises in MWD systems, which are critical for US oil and gas operations.
MWD tools are essential for recording various physical properties during drilling activities, including pressure, temperature and the direction of the borehole.
Gordon Technologies is expected to generate revenues exceeding $230m for the financial year 2023.
ADNOC Drilling highlighted that Gordon Technologies carries no debt and that its acquisition will be economically beneficial to the JV's shareholders.
The benefits outlined include profitability, attractive valuation multiples, strong cash flow generation and potential for dividends.
ADNOC Drilling CEO Abdulrahman Abdullah Al Seiari said: “Through the incorporation of our joint venture we are set to accelerate investment in tech-enabled energy solutions.
“Access to these technologies will support us in our operations, and to accelerate well delivery optimisation in the development of unconventional resources as we strive to enable gas self-sufficiency for the nation.”
Alpha Dhabi managing director and group CEO Hamad Al Ameri said: “Since Alpha Dhabi’s minority stake acquisition of Gordon Technologies in 2022, we have supported its growth strategy in the US market and put the foundations in place for expansion to the Middle East region.
“Through this joint venture, and leveraging both Alpha Dhabi and ADNOC Drilling’s complementary capabilities, we look forward to driving further value creation for the benefit of our mutual stakeholders.”
