DUBAI, United Arab Emirates (AP) — 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.