ADNOC Drilling-Alpha Dhabi JV buying US downhole visualization company for $45 million

A joint venture (JV) of UAE’s ADNOC Drilling and Alpha Dhabi is set to acquire a U.S.-headquartered provider of vision-based diagnostics and analytics services for the oil & gas sector for a consideration of approximately $45 million.

The partners’ Enersol JV has agreed to acquire a 100% equity stake in EV Holdings from the UK-based private equity firm Dunedin. The U.S. company performs well diagnostics services by using solutions that resolve highly complex wellbore issues across the well lifecycle and is present in 36 countries, including the UAE and Saudi Arabia.

Furthermore, EV provides 360-degree downhole cameras, integrated camera-ultrasound technology and other tools that generate visual diagnostic information for the evaluation of technically challenging well issues, and has developed AIVA, a tool agnostic cloud-based data storage.

Over the next two years, EV plans to introduce pipeline visualization and software analytics products.

Completion of the transaction is subject to securing the necessary regulatory approvals and closing adjustments, after which the stake will be formally transferred to Enersol.

According to ADNOC Drilling, the acquisition serves as an additional milestone in building Enersol’s next-generation technology ecosystem, which will present the JV with an additional avenue for growth across untapped markets as well as further upside potential in the long term.

At the time of the announcement in August, the acquisition represented Enersol’s third, following the agreement for the purchase of 51% of NTS Amega, a manufacturer of advanced precision equipment and solutions provider for the energy sector, and the agreement to acquire an additional stake in Gordon Technologies, a U.S.-based provider of measurement while drilling services, achieving a total 67.2% majority.

This brought the total commitments to circa $550 million since Enersol’s inception.