General Electric firm buys 5% stake in Abu Dhabi's state driller

General Electric Company

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 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. Baker Hughes is headquartered in Houston, while GE is based in Boston.