Alpha Dhabi, a unit of Abu Dhabi’s International Holding Company (IHC), has transferred its 25% stake in Gordon Technologies to the investment joint venture (JV) it has created with ADNOC Drilling.
The joint venture aims to invest up to $1.5bn in acquiring technology-enabled firms within the oilfield services and energy sectors.
ADNOC Drilling holds a majority share of 51% in the joint venture, while Alpha Dhabi retains a 49% stake.
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.”
Gordon Technologies marks the inaugural investment for the JV. The company is engaged in providing measurement while drilling (MWD) technology to the directional drilling sector of the American oil and gas industry.
The stake transferred by Alpha Dhabi has been valued at around $180m.
ADNOC Drilling stated that the transfer of the stake and the creation of the joint venture are anticipated to yield value-accretive returns for both shareholders and will align synergistically with its business. Additionally, this move is expected to bolster ADNOC Drilling’s long-term dividend growth profile.
Established in 2014, Gordon Technologies is said to hold strong footholds in its primary operating basins, projecting revenues exceeding $230m in FY2023.
The company is claimed to enhance its customers’ drilling operations by excelling in performance metrics and cost efficiencies.
In August 2023, Gordon Technologies acquired Paisano Labs, a provider of gamma detectors and propagation resistivity tools that are utilised in the directional drilling sector of the oil and gas industry.
ADNOC Drilling said that, as one of the industry’s limited fully integrated MWD players, Gordon Technologies occupies a distinctive position, mainly in high-temperature applications, with reliability measures considerably surpassing the industry average.
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 complimentary capabilities, we look forward to driving further value creation for the benefit of our mutual stakeholders.”
