UAE’s ADNOC awards agreements worth Dhs2.4bn to support upstream growth

Abu Dhabi National Oil Company (ADNOC) said on Thursday that it has awarded framework agreements valued at Dhs2.4bn for cementing services.

It comes as the firm continues to invest and enable drilling growth and expand its crude oil production capacity.

The agreements were awarded to Haliburton Worldwide Limited Abu Dhabi (Halliburton), Baker Middle East (Baker), Emirates Western Oil Well Drilling & Maintenance Co. (Emirates Western), NESR Energy Services (NESR) and Emjel Oil Field Services (Emjel), following a competitive tender process.

We’ve awarded framework agreements worth $658m for cementing services, taking the total value of recent drilling-related awards to support our upstream growth to over $8.5bn.

— ADNOC Group (@AdnocGroup) March 17, 2022

These awards cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years. Over 65 percent of the award value could flow back into the UAE economy under ADNOC’s In-Country Value programme throughout the agreements, according to state-run news agency WAM.

Also, skilled employment opportunities will be created for UAE Nationals by companies who will work to identify local manufacturing opportunities.

The nature of these awards will reportedly enable ADNOC to realise hundreds of millions of dollars in cost savings.

The award for cementing services takes the total value of ADNOC’s drilling-related framework agreements and procurement awards since November 2021 to over Dhs31.2bn. These awards will support ADNOC’s requirement to drill thousands of new wells as it increases its crude oil production capacity to five million barrels per day (mmbpd) by 2030 and drives gas self-sufficiency for the UAE.

Yaser Saeed Almazrouei, ADNOC Upstream executive director, said, “The awards for cementing services will support the ongoing expansion of ADNOC’s drilling activities as we grow our production capacity, strengthening our position as a reliable global supplier of some of the world’s most carbon-efficient barrels.”

Read: ADNOC awards framework agreements worth $1.94bn to boost drilling

Last month, ADNOC awarded framework agreement awards valued at Dhs7.1bn to enable drilling growth. The framework agreements for wireline logging and perforation services are the largest of such awards in the oil and gas industry and were awarded to ADNOC Drilling, Schlumberger, Haliburton and Weatherford.