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

Abu Dhabi National Oil Company (ADNOC) has awarded a contract worth $1.53bn (Dhs5.62bn) to ADNOC Drilling.

The award supports the expansion of ADNOC’s offshore operations. It also underpins the company’s objective to increase production capacity and meet the growing demand for reliable, lower carbon-intensity oil and gas, official news agency WAM reported.

ADNOC Drilling has been awarded a $1.53 billion contract to support the expansion of ADNOC’s offshore operations, as we continue to responsibly meet global demand for lower carbon intensity oil and gas.

— ADNOC Group (@ADNOCGroup) October 10, 2022

ADNOC Offshore awarded the two-year contract which covers the provision of 12 jack-up rigs and two island rigs and the associated Integrated Drilling Services (IDS).

The contract will help leverage ADNOC Drilling’s position as the largest drilling company in the region by rig fleet size to drive value while minimising environmental impact, the statement added.

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.

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

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

Yaser Saeed Almazrouei, ADNOC upstream executive director, said, “Through this award, ADNOC Offshore will continue to responsibly harness the energy in Abu Dhabi’s waters, as we increase production capacity to meet the world’s growing demand for energy with lower carbon intensity oil and gas.

“ADNOC Drilling is a world leader in drilling and completion services. “Their deep expertise and wide technical capability will maximise value and minimise the environmental foorprint of every well as ADNOC expands its production capacity.”

This award will support the expansion of ADNOC’s crude oil production capacity to five million barrels per day (mmbpd) by 2030 and gas self-sufficiency for the UAE.

Since ADNOC Drilling launched its IDS offering in 2018, the company has enabled more than $250m in savings for its customers through end-to-end delivery of drilling and completion services.