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The Abu Dhabi ADNOC invites banks to apply for bookrunner roles for the drilling unit’s IPO, Energy News, ET EnergyWorld


DUBAI: The Abu Dhabi National Oil Co (ADNOC) has invited investment banks to apply for the IPO of their drilling unit as bookrunners, two sources told Reuters on Sunday.

The oil giant invited a handful of international and local banks to join the ADNOC Drilling public sale process due later this month.

ADNOC plans to go public in the third quarter, they added. One of the sources previously said ADNOC could raise at least $ 1 billion from the stock sale.

ADNOC, which supplies nearly 3 percent of global oil demand, declined to comment when Reuters reached out on Sunday.

ADNOC Drilling owns and operates a large fleet of drilling rigs, including 75 onshore drilling rigs, 20 offshore jackup drilling rigs, and 11 well water drilling rigs, according to its website.

The drilling business is critical to ADNOC’s upstream operations and helping the oil company achieve its production goals.

Sultan al-Jaber, Chief Executive of ADNOC, was the chief architect of the transformation strategy the company began with more than four years ago. He built an investment team to monetize assets and raise funds from international private equity groups.

There are also plans to launch Fertiglobe, a fertilizer joint venture with the Netherlands-listed chemical producer OCI, later this year.