ADNOC awards $4bn agreements for integrated drilling fluids services

Abu Dhabi National Oil Company has awarded three framework agreements valued at $4bn (Dhs14.68bn) for integrated drilling fluids services (IDFS), to support its expansion of lower-cost, lower-carbon intensive production capacity.

The agreements were awarded to ADNOC Drilling Company, Schlumberger Middle East and Halliburton Worldwide Limited Abu Dhabi. They cover ADNOC’s onshore and offshore fields, and will run for five years, with an option for a further two years. However, ADNOC Drilling’s scope of the framework agreements is valued at up to $1.6bn.

We’ve awarded three framework agreements worth $4 billion to ADNOC Drilling, SLB and Halliburton for integrated drilling fluids services – supporting our drive to expand our lower cost, lower-carbon intensive production capacity.

— ADNOC Group (@ADNOCGroup) November 1, 2022

Over 80 per cent of the award value could flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program over the duration of the agreements.

These record framework agreements for integrated drilling fluids services continue ADNOC’s significant investment in drilling-related services to enable the expansion of our production capacity and responsibly unlock the UAE’s leading low-cost, lower-carbon intensity hydrocarbons,” said Yaser Saeed Almazrouei, ADNOC upstream executive director.

The framework agreements will enable investment in local manufacturing of equipment and facilities, including in liquid mud plants and a waste management facility, as well as key commodity chemicals. IDFS are necessary to drill the wells that will enable ADNOC to expand its oil production capacity and drive gas self-sufficiency for the UAE.

Since November 2021, ADNOC has awarded over $16bn, covering the new awards and other agreements for drilling-related equipment and services, including agreements for wellheads, downhole completion equipment, liner hangers, cementing service, wireline logging, directional drilling and logging while drilling.

Last month, ADNOC awarded a contract worth $1.53bn to ADNOC Drilling to supports its offshore operations.

Read: ADNOC Drilling awarded $1.53bn contract to help expand ADNOC’s offshore operations

In September, ADNOC Drilling also signed a sale and purchase agreement to acquire two additional premium offshore jack-up drilling units (rigs), scaling the total number to six.

Read: Abu Dhabi’s ADNOC Drilling acquires offshore jack-up rigs for $140m