Adnoc Drilling Co., a subsidiary of the United Arab Emirates’ largest oil producer, plans to secure approximately $1 billion in financing this year. This funding will help the company refinance expiring debts and support investments and dividends, as Chief Financial Officer Youssef Salem detailed in an interview with Bloomberg Television. The company has around $750 million in debt maturing in the fourth quarter of this year.

The Abu Dhabi National Oil Co., which governs Adnoc Drilling, listed the unit in 2021 to attract international investment and facilitate regional expansion. With billions of dollars earmarked for enhancing the emirate’s fossil fuel production capacity, the drilling company is poised for a steady influx of work. Adnoc Drilling is also keen to capitalize on growth opportunities as other regional producers increase output and sales ahead of the global shift away from oil.

According to Salem, Adnoc Drilling has significant potential to raise funds through debt or cash flow to finance acquisitions. The company is focusing on technological advancements and artificial intelligence to enhance operational efficiency, with plans to acquire two additional drilling technology firms this year for a combined total of approximately $700 million. Notably, Adnoc Drilling’s own cash expenditure would be about half of that amount, with partners in a joint venture covering the remainder.

This year, the company is set to commence drilling operations in Kuwait and Oman, building on its initial ventures in Jordan last year. Salem indicated that this could involve purchasing rigs or drilling businesses in these new markets.