Abu Dhabi National Oil Company (Adnoc) has announced awarding $6bn-worth of major contracts to enhance drilling operations across its upstream developments.
The announcement was made during the second day of the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC ). It comes after shares of its subsidiary company, Adnoc Drilling, started trading on the Abu Dhabi Securities Exchange (ADX) in early October.
The drilling contracts awarded by Adnoc cover three segments, all crucial in drilling for oil and gas and completing wells:
- Wellheads and related components
- Downhole completion equipment (DCE) and related services
- Liner hangers and cementing accessories
The service providers that won the procurement awards, along with their contract values and durations, are:
- Wellheads and related components:
Gulf Automation Services & Oilfield Supplies (Gasos ), UAE agent for TechnipFMC and Al-Ghaith Oilfield Supplies & Services Company, UAE agent for Baker Hughes
- – $3.27bn, equally split between the two service providers – 10 years
- DCE and related services:
Schlumberger Middle East and Weatherford bin Hamoodah Company
- – $1.41bn and $931m, respectively – five years plus two years
- Liner hangers and cementing accessories:
Weatherford bin Hamoodah, UAE agent for Weatherford and Uni-Arab Engineering & Oilfield Service, UAE agent for Baker Hughes .
The award for cementing accessories was made to Al-Ghaith Oilfield Supplies & Services Company, UAE agent for Downhole Products ; Best Pick General Trading , UAE agent for NeOz Energy and Al-Mansoori Specialised Engineering, UAE agent for Sledgehammer
– $337m, combined value of the contracts
– five years plus two years
Almost 6% of the awards’ total value is expected to be redirected into the UAE’s economy under Adnoc’s In-Country Value (ICV) localisation programme.
More than $900m-worth of wellheads, over $700m-worth of DCEs and all liner hangers will be manufactured in the UAE, Adnoc said.
In addition, $185m in foreign direct investment will flow into the UAE’s economy to establish two wellhead manufacturing and assembly facilities, enhance drilling-related equipment manufacturing and assembly, and enable local manufacturing of 20 new drilling completion products, to strengthen ‘the UAE’s drilling supply chain with vendor managed inventory,’ Adnoc added.
“The huge ICV resulting from this mega award package directly supports the objectives of the UAE’s ‘Principles of the 50’ to develop human capital and accelerate the development of a dynamic economy,” the company said.
Call for $600bn upstream investment
The $6bn investment in drilling operations stems from Adnoc’s strategic objective to build an oil production capacity of 5 million barrels a day (b/d) by 2030.
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