ADNOC Drilling awarded $733 Million contract for three newbuild island rigs

ADNOC Drilling secured a US $733 million contract from ADNOC Offshore for the development of three advanced island drilling rigs. These rigs are set to support the expanding operations at the offshore Zakum field.

Abdulrahman Abdulla Al Seiari, Chief Executive Officer of ADNOC Drilling, expressed pride in receiving this significant award, which aligns with the company’s rapid growth trajectory. "These new island rigs will be the most advanced in the world, embracing artificial intelligence, the most transformative technology of our generation," Al Seiari stated. "Our partnership with HH will amplify the creativity and ingenuity of our industry as we design and build these rigs of the future that drive efficiency and safety and deliver exceptional value for our customer ADNOC Offshore.”

Tayba Abdul Rahim Al Hashemi, Chief Executive Officer of ADNOC Offshore, highlighted the strategic importance of this award. “ADNOC Drilling’s technical expertise and enhanced capabilities are key enablers as we safely and sustainably accelerate to meet the world’s growing energy demands. This award will strengthen our partnership in the future as we work together to harness AI and innovation to maximise energy, minimise emissions and unlock significant value for stakeholders.”

Advanced technology and partnership

The construction of the rigs will be undertaken by Honghua Group (HH), incorporating leading technology and automation. Delivery and operational commencement are expected in 2026. The rigs will be designed through a partnership between ADNOC Drilling and HH, emphasising the use of AI, digitisation, and advanced technology to optimise performance and safety.

This collaboration will also involve AIQ, an Abu Dhabi-based AI pioneer, to integrate real-time data for actionable insights, enhancing rig performance and efficiency. The rigs are designed for extended reach drilling (ERD) and can move between wells without dismantling, significantly improving efficiency, safety, and reducing costs and emissions.

The expected capital expenditure for these new rigs is approximately £210 million, primarily in 2025, with the first full-year revenue anticipated in 2027. ADNOC Drilling’s current fleet of 10 island rigs will remain operational with a 2024 revenue guidance of £200-250 million unchanged.

By 2026, ADNOC Drilling’s fleet is projected to total at least 148 rigs, including these new island rigs and three previously announced land rigs for unconventional developments. Since its IPO in the fourth quarter of 2021, ADNOC Drilling has invested over £2.2 billion to develop one of the largest integrated drilling fleets globally.

These strategic investments and partnerships underscore ADNOC Drilling's commitment to advancing technology, efficiency, and sustainability in the energy sector, positioning itself as a leader in offshore drilling innovation.