King & Spalding advises Baker Hughes on strategic partnership with ADNOC

King & Spalding represented Baker Hughes, a GE company (BHGE), on its strategic partnership agreement with Abu Dhabi National Oil Company (ADNOC) that will enable and support the growth and development of ADNOC’s subsidiary, ADNOC Drilling. The partnership represents the first time that ADNOC has brought an international strategic partner to acquire a direct equity stake in one of its existing services businesses. ADNOC Drilling is the largest drilling company in the Middle East and the sole provider of drilling rigs and associated services to ADNOC Group companies. ADNOC Drilling also possesses decades of market experience and detailed knowledge of the UAE’s subsurface, enabling reduced risk in drilling activities. With more than 40 years of operations in the country, BHGE has deep domain expertise and a proven track record of solving complex drilling challenges through innovative technical solutions. Ongoing access and support from BHGE’s market-leading technology and equipment portfolio will help accelerate ADNOC Drilling’s ongoing growth and development of a broader product offering, including drilling and well completion services. This partnership structure aligns the interests of both ADNOC and BHGE in driving greater productivity and efficiency while increasing returns. The two partners will be able to leverage ADNOC Drilling’s existing rig fleet capacity with limited capital expenditure outlay. The partnership will gain significant new business opportunities, including the potential to offer integrated drilling services beyond the UAE’s borders.

The King & Spalding team was led by partners, Martin Hunt (London) and Osama M. Audi (Dubai). Jennifer Josefson (Partner, Moscow) led on the commercial framework agreements. Jill McWhirter (Partner, Houston) led on the significant intellectual property aspects of the deal. Jules Quinn (Partner, London) and Faiza Mukith (Associate, London) advised on employment matters. John Taylor (Partner, London) advised on tax and regulatory matters. Other team members include: Tim Burbury (Partner, Abu Dhabi), Adrian Cole (Partner, Abu Dhabi), Moustafa Said (Partner, Dubai), Usman Ahmed (Senior Associate, Abu Dhabi), Adnan Doha (Senior Associate, Dubai), Hamzeh Al Rasheed (Associate, Dubai), Yousef Farsakh (Associate, Dubai), Ruslan Sulaimanov (Associate, Dubai) and Sherif Saleh (paralegal, Dubai).