The board of directors of ADNOC Drilling, a subsidiary of Abu Dhabi’s National Oil Company (ADNOC), has passed a resolution approving a term loan facility of up to $1.5 billion and a revolving credit facility of up to 1.84 billion dirhams ($501 billion).
The term loan facility will be used to repay the existing syndicated term loan for an equal amount, whereas the new dirham revolving credit facility will fund the company’s growth and the associated working capital.
Why it matters
ADNOC Drilling plans to expand its fleet of rigs to 140 by 2024, CEO Abdulrahman Abdullah Al Seiari had said last year. This credit boost not only helps ADNOC clear off past loans which are due November 2023, but also fuel its growth through the year. Thus, wiith these new financial arrangements, ADNOC Drilling Co. aims to enhance its operational efficiency and profitability, as well as to support ADNOC’s ambitious upstream growth plans.