ADNOC Drilling expands fleet with two premium jack-up rigs

ADNOC Drilling said on Monday it has signed a sale and purchase agreement (SPA) to acquire an additional two premium offshore jack-up drilling units.

The investment is key to ADNOC’s expansion strategy and forms part of its three-year guidance on capital expenditure, the company said. Since listing on the Abu Dhabi Securities Exchange in October 2021, ADNOC Drilling has expanded its fleet from 96 to 104 owned rigs, as of 31 March, 2022.

The latest acquisition cements both cash from operations, with net profit for the period adjusted for non-cash items before working capital changes, and the utilisation rate based on rig availability, ADNOC Drilling said.

ADNOC as a regional drilling leader

“We are extremely pleased to have completed the acquisition of these two premium rigs, which will further bolster our position as a regional drilling leader and complement our already high quality offshore jack-up fleet,” Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, said in a statement.

“This is another important step in our fast-paced expansion and growth program, ensuring we meet increasing demand as we enable ADNOC’s ambitious oil and gas production capacity growth as well as achieving gas self-sufficiency for the UAE,” he added.

The new drilling units will join the ADNOC Drilling fleet and start operations in the third quarter 2022, enabling considerable revenue for ADNOC Drilling, Al Seiari said.

Fast-tracked fleet expansion programme

ADNOC Drilling’s fast-tracked fleet expansion programme aims to trigger further growth for the company and enable ADNOC’s ambitious targets to deliver 5 million bpd production capacity and realise gas self-sufficiency for the UAE.

In March 2022, it was announced that ADNOC Drilling would become an inaugural member of FADX 15, a new tradable index created by ADX and FTSE Russell, marking another significant milestone in the Company’s history. The index is uniquely designed by ADX and FTSE Russell to track the performance of the most liquid and largest companies on the ADX main market.