ADNOC awards $980m contract to spur UAE’s offshore energy resources

Abu Dhabi National Oil Company (ADNOC) has awarded a contract worth $980m (Dhs3.6bn) to ADNOC Drilling to hire two jack-up offshore rigs and associated manpower and equipment.

The contract, awarded by ADNOC Offshore, will support the expansion of ADNOC’s production capacity. It brings the total value of awards from ADNOC Offshore to ADNOC Drilling in 2022 to $5.95bn (Dhs21.84bn).

ADNOC Drilling awarded 15-year contract worth $980 million by ADNOC Offshore to hire two jack-up rigs. This Award will support production capacity growth as we respond to global demand for hydrocarbons with lower carbon intensity.

— ADNOC Group (@ADNOCGroup) October 13, 2022

Over 80 per cent of the new contract value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme, supporting local economic growth and diversification, the company said in a statement.

“This award for the hire of jack-up rigs supports our ongoing efforts to responsibly unlock our lower carbon intensity oil and gas resources, alongside our strategic international partners, and contribute to global energy security,” said Yaser Saeed Almazrouei, ADNOC upstream executive director.

In October, ADNOC Drilling was awarded a contract worth $1.52bn for the provision of jack-up and island rigs and associated Integrated Drilling Services.

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

Last month, ADNOC Drilling signed a sale and purchase agreement to acquire two additional premium offshore jack-up drilling units (rigs), scaling the total number to six. Its rig fleet spans 105 owned rigs, including 28 offshore jack-up units.

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

ADNOC Offshore is supporting ADNOC’s drive to expand production capacity to five million barrels per day by 2030 and enable gas self-sufficiency for the UAE, the statement added.