DUBAI, May 29 (Reuters) - ADNOC Drilling

will acquire a 70% stake in oil services firm SLB's

onshore rig business in Oman and Kuwait for up to $112 million,

creating a joint venture it seeks to double in the next year,

its chief financial officer said on Thursday.

The acquisition, expected to close in the first quarter of

2026, will give ADNOC Drilling - a unit of Abu Dhabi state oil

major ADNOC - access to eight operational onshore drilling rigs,

six in Oman and two in Kuwait.

"So we have things in the pipeline that will potentially at

least double that existing, initial eight rigs footprint," ADNOC

Drilling CFO Youssef Salem told Reuters.

ADNOC Drilling will pay $91 million for the stake, with

another $21 million payout to SLB linked to business

performance, Salem said.

The current oil price and macroeconomic environment "put

pressure on valuations and multiples globally ... and reduces

the pool of potential buyers for such assets, generally, and

hence presents a competitive advantage, especially for a cash

buyer," he said.

The transaction will be financed by drawing from a $1

billion revolving loan that ADNOC Drilling has with a group of

regional and international banks. The loan matures in the fourth

quarter and will be refinanced before then, Salem said.

The deal will mark the first drilling operations outside the

United Arab Emirates for the company, apart from a single rig in

Jordan.

ADNOC Drilling's focus will be on growing its scale in Oman

and Kuwait, through acquisitions as well as tenders, while also

evaluating expansion into other markets, Salem said.