ADNOC Drilling gets $1.53 billion ADNOC contract to expand offshore operations

Abu Dhabi National Oil Company (ADNOC) on Monday announced the award of a contract worth $1.53 billion (AED 5.62 billion) to ADNOC Drilling. The award supports the expansion of ADNOC’s offshore operations and its objective to responsibly increase production capacity and meet the growing global demand for reliable, lower carbon intensity oil and gas, the company said.

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). ADNOC Offshore and its strategic international partners continue to maximise value from Abu Dhabi’s offshore oil and gas resources and this award will leverage ADNOC Drilling’s start-to-finish offering as well as its position as the largest drilling company in the region by rig fleet size to drive value and efficiencies while minimising environmental impact.

According to ADNOC, more than 80% of the award value will flow back into the UAE’s economy under ADNOC’s successful InCountry Value (ICV) programme, supporting local economic growth and diversification.

“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,” Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said in a statement.

“ADNOC Drilling is a world leader in drilling and completion services. Their deep expertise and wide technical capability will maximize value and minimise the environmental foorprint of every well as ADNOC expands its production capacity. The substantial in-country value generated through this contract will support the directives of our wise leadership to grow and diversify the UAE economy,” he added.

The contract 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. ADNOC Drilling has provided IDS to ADNOC Offshore since 2019. The company’s highly competitive position, integrated capabilities and technical expertise have helped increase the efficiency of ADNOC’s offshore operations.

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