Create a free Manufacturing.net account to continue

GE Firm Buys 5-Percent Stake in Abu Dhabi's State Driller

A subsidiary of General Electric Co. has agreed to purchase a 5-percent stake in the drilling arm of Abu Dhabi's state oil company for $550 million.

This June 24, 2014 file photo shows the General Electric plant in Belfort, eastern France. General Electric Co. is cutting up to 6,500 jobs in Europe after buying a big chunk of France’s Alstom, raising questions about GE’s pledges to create rather than destroy jobs. (AP Photo/Thibault Camus, File)
This June 24, 2014 file photo shows the General Electric plant in Belfort, eastern France. General Electric Co. is cutting up to 6,500 jobs in Europe after buying a big chunk of France’s Alstom, raising questions about GE’s pledges to create rather than destroy jobs. (AP Photo/Thibault Camus, File)

A subsidiary of General Electric Co. has agreed to purchase a 5-percent stake in the drilling arm of Abu Dhabi's state oil company for $550 million.

The deal announced on Monday with Baker Hughes, also known as BHGE, values the drilling subsidiary of Abu Dhabi National Oil Co. at around $11 billion. ADNOC says that valuation includes some $1 billion in debt.

It also marks the first time Abu Dhabi has sold a stake in its businesses to a foreign interest.

ADNOC Drilling operates over 90 drilling rigs, making it the Mideast's largest drilling company.

Overall, ADNOC produces some 3 million barrels of crude oil and 10.5 billion cubic feet of natural gas a day.

BHGE's dual headquarters are in London and Houston.

More in Energy