The Abu Dhabi National Oil Company (ADNOC) has awarded contracts worth almost $6bn (AED22bn) for downhole completion equipment, wellheads and related components.
The investment forms part of the firm’s efforts to enable drilling growth to support its aim to increase crude oil production capacity to five million barrels per day (MMbpd) by 2030.
Said to be crucial in supporting drilling operations for oil and gas and completing wells, the contracts are expected to help the country reach gas self-sufficiency, the national oil company said.
UAE agents of TechnipFMC and Baker Hughes, Gulf Automation Services & Oilfield Supplies (GASOS) and Al Ghaith Oilfield Supplies & Services Company respectively received contracts worth up to $3.27bn (AED12bn) in total for wellheads and related components. The contracts have a term of ten years.
ADNOC also awarded contracts worth up to $2.34bn (AED8.6bn) to Schlumberger Middle East and Weatherford Bin Hamoodah for the downhole completion equipment and related services.
The five-year awards have an option to extend for two additional years.
The contracts for liner hangers have been awarded to Weatherford Bin Hamoodah and Uni-Arab Engineering & Oilfield Service whereas the contracts for cementing accessories were awarded to Al Ghaith Oilfield Supplies & Services Company, Best Pick General, and Al Mansoori Specialized Engineering.
The five-year contracts for liner hangers and cementing accessories have a combined value of up to $337m (AED1.24bn). It also has the option to extend for two years.
UAE Minister of Industry and Advanced Technology, and ADNOC managing director and group CEO Dr Sultan Ahmed Al Jaber said: “ADNOC’s world record investments in drilling-related equipment underlines our commitment to responsibly unlocking our world-scale hydrocarbon resources and expanding our production capacity to continue providing the world with some of the least carbon-intensive barrels for decades to come.
“Crucially, the awards will directly create more skilled employment opportunities for UAE Nationals, enhance domestic manufacturing and further stimulate the growth of the private sector and our local industrial base.”
ADNOC said that more than $1.8bn (AED6.6bn) worth of oil and gas drilling-related equipment under the new contracts will be made in UAE.
The contracts will see the establishment of two wellheads manufacturing and assembly facilities, as well as allow local manufacturing of 20 new drilling completion products.