Abu Dhabi National Oil Company (ADNOC) has awarded framework agreements worth $4bn to expand its low-carbon oil production capacity.

The contracts for integrated drilling fluids services (IDFS) have been awarded to ADNOC Drilling Company, Schlumberger Middle East (SLB), and Halliburton Worldwide.

The IDFS agreements for the onshore and offshore fields have a five-year period, with an option for a further two years.

The provision of the integrated drilling fluids services includes engineering, products, technical laboratory support, filtration equipment, and solid control equipment to help boost the oil production capacity.

ADNOC upstream executive director Yaser Saeed Almazrouei said: “These record framework agreements for integrated drilling fluids services continue ADNOC’s significant investment in drilling-related services to enable the expansion of our production capacity and responsibly unlock the UAE’s leading low-cost, lower-carbon intensity hydrocarbons.

“In line with the wise directives of the UAE’s leadership, we are prioritising in-country value as we respond to growing global demand for energy, and these agreements will create skilled job opportunities for UAE nationals in the private sector, drive domestic manufacturing, and support the UAE’s industrial growth.”

ADNCO expects the framework agreements to support the local manufacturing of liquid mud plants and a waste management facility.

The company recently signed a Memorandum of Understanding (MOU ) with Gas Authority of India Limited (GAIL) to explore opportunities in liquefied natural gas (LNG) supply and decarbonisation.

The agreement also covers the potential optimisation of LNG trading activities, the review of joint investments in renewables, and the monitoring of LNG cargoes’ greenhouse gasses to support low carbon LNG supplies.