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December 17, 2021

Adnoc Drilling wins major $3.8bn contract

Adnoc Drilling was awarded a five-year contract from Adnoc Onshore for drilling and other well management services to boost efficiency.

By MEED   

Adnoc Drilling has won a significant $3.8bn contract, with a duration of five years, from fellow Adnoc Group subsidiary Adnoc Onshore for the continued provision of drilling, workover and other well management services.

Adnoc Drilling said the newly awarded contract would drive efficiency in work crews, rig move time and maintenance schedules.

“Adnoc Onshore is a valued and long-standing customer and this contract award further extends a 50-year profitable and unique partnership,” Abdulrahman Abdullah al-Seiari, CEO of Adnoc Drilling, said in a statement to the Abu Dhabi Securities Exchange (ADX), where the company’s shares began trading from 3 October.

In July, Adnoc Drilling was awarded a $228.71m offshore drilling contract by another Adnoc Group subsidiary Adnoc Offshore. The contract was among three contracts worth $763.7m that Adnoc Offshore awarded for the provision of integrated rigless services across six of its artificial islands in the Upper Zakum and Satah al-Razboot (Sarb) offshore fields.

More recently, in November, Abu Dhabi National Oil Company (Adnoc) Group announced awarding $6bn-worth of major contracts to enhance drilling operations across its upstream developments, as it seeks to boost its crude oil production capacity to 5 million barrels a day by 2030.

Adnoc Drilling raised more than $1.1bn in September from its initial public offering.

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Adnoc maintains the majority 84 per cent stake in Adnoc Drilling. US energy services company Baker Hughes, which entered into a strategic partnership with Adnoc Drilling in October 2018, has a 5 per cent stake. The remaining 1 per cent stake is owned by US oil and gas drilling firm Helmerich & Payne.

The company reported a 48 per cent increase in third-quarter 2021 net profit, backed by its onshore and oil field services segments. Net profit climbed to $178m, from $120m in the same period a year earlier.

After its IPO, Adnoc Drilling was included in three of FTSE Russell’s global indices – the FTSE Emerging Index, the FTSE Global Large Cap Index and the FTSE All-World Index.

Adnoc Drilling is the only provider of fully integrated drilling services in the region and has helped companies save more than $250m since 2018, according to the statement.

The company owns 96 rigs and is the sole provider of drilling rig hire services and certain associated rig-related services to Adnoc.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.

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