ADNOC to invest US $6 bn for drilling

The Abu Dhabi National Oil Company (ADNOC) has made record investments in drilling, of up to almost US$6 billion as it boosts its crude oil production capacity to 5 million barrels per day (mmbpd) by 2030, the company said on Tuesday.

ADNOC said in a statement that these investments are in the form of procurement awards to "top-tier contractors" for Wellheads and related components, Downhole Completion Equipment (DCE) and related services, and Liner Hangers and Cementing Accessories.

“The awards were secured at highly competitive rates, enabling substantial cost savings for ADNOC and underpinning our broader efforts to drive commerciality and value across our entire portfolio,” said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, and ADNOC Managing Director and Group CEO, in the statement.

The company said that around 60 percent of the total value of the awards could flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program over the duration of the awards.

ADNOC said that more than US $900 million worth of wellheads and over US $700 million worth of Downhole Completion Equipment will be manufactured within the country. 

“The scope of the awards cut across the ADNOC Group and will provide ADNOC with a robust supply chain of drilling-related equipment to enable its requirement to drill thousands of new wells  as it expands its production capacity while maintaining its leading low-cost oil producer status,” said the company in a statement.

Gulf Automation Services & Oilfield Supplies (GASOS), UAE agents for TechnipFMC, and Al Ghaith Oilfield Supplies & Services Company, UAE agents for Baker Hughes, secured the awards with both companies having an equal split of the scope which runs for 10 years.

ADNOC said that the procurement award for wellheads and related components is worth up to US $3.27 billion.