With eyes on an IPO, Action Energy grows its upstream footprint

October 22, 2025

Sheikh Mubarak A. M. Al Sabah, chairman of Action Energy, and Ahmad Mohammad Al Ajlan, CEO, talk to The Energy Year about emerging opportunities in Kuwait’s dynamic upstream segment and the technologies that are improving the company’s efficiency and environmental footprint. Action Energy is a Kuwait-based oilfield and energy services company.

What have been the key drivers behind Action Energy’s recent growth?
Sheikh Mubarak A. M. AL SABAH: Action Energy’s growth is the result of a clear strategic focus combined with a commitment to operational excellence. We now operate a significant percentage of Kuwait’s rigs and employ more than 1,500 people, but from the outset, we prioritised agility, local capability development and investing in advanced technologies tailored to Kuwait’s operational environment.
Our strong partnerships, deep understanding of local needs and highly skilled workforce set us apart from competitors. We also place significant emphasis on safety, reliability and continuous improvement – all of which are critical differentiators against both domestic and international competitors. This has earned us the market’s trust and allowed us to scale sustainably.
We are the only domestic company that offers drilling as well as well services to KOC, and we look forward to growing our footprint in the industry by adding more services to our portfolio.

With Kuwait’s upstream segment undergoing rapid expansion, where do you see the biggest opportunities?
Ahmad Mohammad AL AJLAN: We view Kuwait’s upstream expansion as a signal of the country’s long-term energy commitment. It is creating a dynamic landscape for oilfield services providers, and Action Energy is well-positioned to support Kuwait’s growth.
First, we see significant opportunities in drilling and rig services, as new production targets will require accelerated drilling campaigns both onshore and offshore. We also see opportunities in EOR and field optimisation, especially in mature fields such as Burgan, which will require advanced technologies. As offshore discoveries open new frontiers for Kuwait, offshore development support also presents interesting opportunities for us.

How is the company progressing towards going public by the end of 2025, and what impact will it have on your growth and visibility?
MAS: Action Energy continually assesses its options and looks for new ways to drive growth. Going public would be a significant milestone for the company, but we know it should be done at the right time. A strategically timed IPO is a way to enhance our visibility and credibility in Kuwait and the broader region, and to access capital to accelerate our growth ambitions.
As a business, we will continue to strengthen our corporate governance, enhancing transparency and aligning our financial and operational reporting with international standards. We are also diversifying our service portfolio and looking to expand regionally to position the company for long-term, sustainable growth.

What have been Action Energy’s key highlights in the past year?
AAA: Over the past year, we successfully expanded our rig fleet with the addition of advanced electric units, enabling us to increase our drilling efficiency and meet KOC’s growing demands. However, the key highlight was the successful mobilisation of new workover rigs to Kuwait ahead of the planned schedule, as we look forward to expanding our footprint in the Kuwaiti upstream segment in both drilling and services.

 

How are you expanding your footprint in technically demanding onshore developments?
AAA: We have already successfully deployed two state-of-the-art, fast-moving electric drilling rigs dedicated to shallow drilling and workover operations in Kuwait’s heavy oil fields. These electric rigs provide precise operational control, improved efficiency and a lower environmental footprint – all critical factors in heavy oil development.
Building on our pre-qualification for deep drilling in 2024, we are further leveraging our fleet of high-specification rigs designed for technically demanding onshore projects, including deep and HPHT [high-pressure, high-temperature] wells. Our approach combines advanced drilling capabilities, tailored well services and expertise in heavy oil production optimisation, which positions us well for opportunities in the Mutraba field.
Additionally, we continue to invest in technologies such as real-time data monitoring and predictive maintenance to enhance rig performance and reduce downtime. These capabilities ensure we deliver reliable, high-quality outcomes for complex onshore developments.

What opportunities do you foresee emerging from the offshore discoveries at Al Julaiah and Al Nokhatha?
AAA: Action Energy is developing partnerships and technical solutions to address the unique challenges of offshore operations, particularly in Al Julaiah and Al Nokhatha. We are enhancing our capabilities across well services, completions and offshore maintenance to align with the specific requirements of these fields.
Our offshore growth strategy focuses on deploying specialised equipment, offshore-certified service teams and technologies tailored for subsea environments and complex well architectures. Through collaborations with leading technology partners, we can introduce advanced solutions in offshore well integrity, stimulation and artificial lift systems to support Kuwait’s evolving offshore ambitions.

What is the significance of KOC’s Ahmadi Innovation Valley, and what new capabilities and technologies is Action Energy bringing to the fore?
AAA: We are fully aligned with KOC’s vision for the Ahmadi Innovation Valley and are committed to positioning Kuwait as a regional leader in smart oilfield technologies. To support this digital and AI-driven transformation, we are developing several initiatives.
One of our flagship projects is the implementation of an AI-based real-time data monitoring and predictive maintenance system across our rig fleet, enabling continuous performance tracking. This allows operators to anticipate equipment wear and schedule maintenance proactively, reducing downtime and maintenance costs and improving rig efficiency.
Another example is the AI Driller, an AI-based system that monitors all critical rig parameters and is designed to optimise drilling speed while predicting, preventing and controlling potential blow-outs. This autonomous system operates independently or as an intelligent support tool, ensuring safer and more optimised drilling operations.
In addition, these digital capabilities help optimise drilling parameters in real time, accelerating drilling-to-completion timelines and enhancing decision making in complex wells. Action Energy is also exploring AI applications in reservoir characterisation and production optimisation to further support Kuwait’s upstream digital evolution.

Given KPC’s plans for reducing emissions and integrating low-carbon technologies, how are you supporting the decarbonisation of upstream operations?
AAA: We support KPC’s ESG targets and contribute to sustainable energy practices across the upstream value chain. All rigs mobilised by Action Energy over the past year are fully electric, meaning all key rig components are powered by electric motors rather than traditional systems.
These rigs operate on power generated by highly efficient diesel generator sets, which already deliver better fuel efficiency than conventional diesel-mechanical rigs. More importantly, these rigs are designed for direct connection to Kuwait’s national power grid, so they can operate without diesel generators in locations with grid access.
Additionally, Action Energy has launched a pilot project involving the deployment of a high-capacity electric battery storage system that captures, stores and reuses energy during tripping operations to improve energy efficiency. The pilot is set to run for one year to evaluate its performance and durability in Kuwait’s extreme conditions.

What are your ambitions for Action Energy for the next 2-3 years?
MAS: Kuwait’s upstream transformation presents tremendous opportunities, and Action Energy can play a pivotal role. Over the coming years, our vision is to strengthen our position as the leading Kuwaiti energy services company by expanding our rig fleet, enhancing service capabilities and integrating more digital and sustainable solutions.
We aim to support Kuwait’s production and efficiency targets while contributing to the country’s energy transition goals. By deepening partnerships with key stakeholders and continuously investing in local talent and innovation, we see Action Energy not just as a service provider but as a strategic enabler in shaping the future of Kuwait’s energy sector.

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