Benzinga | Dec 20, 2021 12:40PM EST

Helmerich & Payne, ADNOC Drilling Co. Report Finalization Of Rig Enablement Framework Deal, No Terms Disclosed

* Strategic agreement will further streamline ADNOC Drilling's operations, reduce costs and build shareholder value

* Framework will improve operational resilience across ADNOC Drilling's land rig fleet and enable expansion plans

* Agreement will enable H&P to expand its drilling and operational expertise outside the U.S.

ADNOC Drilling Company PJSC ("ADNOC Drilling" or the "Company") (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) and Helmerich & Payne, Inc. ("H&P") (NYSE:HP) today jointly announced the finalization of the Rig Enablement Framework Agreement ("Framework Agreement").

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211219005072/en/

The Framework Agreement will advance ADNOC Drilling's land rig operational performance, as well as support its ambitious growth and expansion plans. Focused on improving drilling efficiencies and unlocking operational savings, the Framework Agreement builds on the Asset Purchase Agreement and IPO Cornerstone Agreement announced on September 8, 2021, further strengthening the strategic alliance between ADNOC Drilling and H&P.

Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, said: "The Rig Enablement Framework Agreement announced today is a natural evolution of both our strategic alliance with H&P and ADNOC Drilling's growth trajectory. By sharing global best practices and further optimizing our world-class rig fleet, this agreement turbocharges ADNOC Drilling's significant competitive advantage, enabling us to further capitalize on and cement our leading position as the largest national drilling company in the Middle East and the only national drilling company that offers start-to-finish well services. The resulting efficiency gains will deliver enhanced operational excellence, in turn delivering even greater value to our shareholders."

John Lindsay, H&P's President and CEO commented, "We are excited about our alliance with ADNOC Drilling. Our cornerstone investment in ADNOC Drilling's IPO supported the execution of our international growth strategy to allocate additional capital outside the U.S. and is a testament to our belief in what ADNOC Drilling and H&P can achieve together. The finalization of the Rig Enablement Framework Agreement now provides further opportunity to build on this strategic relationship and combine our capabilities to deliver exceptional operational performance."

ADNOC Drilling's recent IPO was the largest-ever listing on ADX, raising over $1.1 billion and marking a significant milestone in ADNOC's value creation strategy. Substantial demand saw the IPO oversubscribed more than 31 times, highlighting strong confidence in the Company's growth trajectory. As a Cornerstone Investor, H&P committed $100 million to the Offer, subject to a three-year lock-up period.