04:50 AM EDT, 05/13/2024 (MT Newswires) -- Patterson-UTI Energy ( PTEN ) said Monday it signed a non-binding term sheet with ADNOC Drilling, a Middle East contractor.

The proposed deal remains subject to the implementation of definitive agreements and regulatory approvals.

Under its terms, Patterson-UTI Energy ( PTEN ) expects to hold a minority equity interest in Turnwell Industries, a company formed by ADNOC Drilling that has been awarded a $1.7 billion contract to drill and complete 144 unconventional wells for Abu Dhabi National Oil. Schlumberger Middle East will also have a minority stake in Turnwell.

In exchange for the minority equity interest, Patterson-UTI Energy ( PTEN ) expects to provide Turnwell drilling and other oilfield service expertise, and a "limited cash contribution to fund our portion of working capital," the company said.

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