ADNOC Drilling and Alpha Dhabi’s Enersol acquires major stake in NTS AMEGA

ADNOC Drilling Company PJSC and Alpha Dhabi Holding PJSC have jointly announced that their collaborative venture, Enersol, will acquire a 51% equity stake in NTS AMEGA for approximately $58 million, positioning Enersol as the majority stakeholder. The transaction, initially mirrored by Alpha Dhabi’s October 2023 investment in NTS, is pending regulatory approval and customary closing adjustments.

The acquisition of the 51% stake by Enersol in NTS—a global leader in advanced manufacturing and service solutions within the Oil and Gas sector—marks a pivotal expansion for the joint venture. NTS AMEGA, with operational hubs across the USA, Canada, Saudi Arabia, Singapore, and Norway, specializes in high precision tool manufacturing and repair solutions aimed at enhancing drilling efficiencies and reducing operational costs.

NTS AMEGA reported a commendable financial performance in FY2023, with revenues surpassing $120 million, significant EBITDA margins, and a free cash flow yield exceeding 10%. This acquisition not only promises substantial financial returns for Enersol’s stakeholders but also aligns with its ambition to forge a technology-centric investment platform in the oilfield services sector. Following the acquisition, Enersol aims to boost its technological capabilities and market reach, particularly in the GCC region.

Enersol, a joint venture between ADNOC Drilling and Alpha Dhabi, acquires a 51% stake in NTS AMEGA for $58 million, boosting its tech-driven oilfield services.

The integration of NTS under Enersol is expected to drive innovative technology solutions across the industry, particularly through Turnwell Industries. This newly established entity focuses on leveraging AI and smart technologies to revolutionize drilling, completion, and production processes in the UAE’s unconventional energy resources. This move is a part of a broader strategy aimed at supporting the energy transition and economic diversification initiatives.

The consolidation of such significant technological and manufacturing capabilities under Enersol’s umbrella reflects a strategic foresight to capitalize on the growing demand for advanced oilfield services. The financial robustness and strategic acquisitions by Enersol could set a new standard in the industry, propelling it towards a more technology-driven future.