The Abu Dhabi National Oil Company (Adnoc) has awarded three contracts worth nearly AED13.2bn ($3.6bn) to procure materials for well construction and drilling activities.
The companies will deliver a total of one million metric tonnes of casing and tubing over five years. The contracts were awarded on the basis of forecasted requirement for casing and tubing across the group.
Adnoc upstream executive director Abdulmunim Saif Al Kindy said: “The award of contracts with a combined scope that is one of the world’s largest for tubing and casing follows a highly competitive bid process.
“It underscores Adnoc’s optimisation efforts to drive commerciality across our growing portfolio.
“In addition, it is testament to our targeted approach to engage with value-add partners to unlock value as well as enhance the performance and returns on our assets and capital.”
The move is part of part of Adnoc’s planned $15bn drilling-related procurement investment in the next five years. The state-owned oil company is also set to to make significant procurements in the categories of wellheads, drilling fluids, wireline logging, and downhole completion equipment, among others.
The latest contract awards are expected to generate more than $1.8bn in value for the national economy creating additional skilled employment opportunities and supporting products and services.
It also supports Adnoc’s upstream growth plans, as it aims to increase conventional drilling activities by 40% by 2025 and also boost the number of its unconventional wells.
The company is eyeing four million barrels of oil production capacity per day (mmbpd) by the end of 2020 and five mmbpd by 2030.