ADNOC Drilling has received a contract, worth $980m (AED3.6bn), to hire two jack-up offshore rigs to further unlock offshore energy resources in the UAE.

The contract has been awarded by ADNOC Offshore to execute its production capacity expansion plan.

ADNOC aims to expand its production capacity to five million barrels per day by the end of this decade and enable gas self-sufficiency for the UAE.

ADNOC upstream executive director Yaser Saeed Almazrouei said: “This award for the hire of jack-up rigs supports our ongoing efforts to responsibly unlock our lower carbon intensity oil and gas resources, alongside our strategic international partners, and contribute to global energy security.

“ADNOC Drilling’s world-class capabilities continues to be a key enabler of these efforts. Importantly, this award will also deliver significant in-country value to drive economic growth and diversification, in line with the UAE leadership’s wise directives.”

In a separate announcement, a consortium led by ONGC Videsh (OVL) is considering purchasing a stake in ADNOC’s producing hydrocarbon asset, reported Live Mint, citing two people familiar with the matter.

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By GlobalData

The consortium comprises other state-owned companies including Indian Oil Corp. Ltd (IOCL), Bharat PetroResources Ltd (BPRL), and Oil India Ltd (OIL).

One of the two people was quoted by the news agency as saying: “We already have two blocks in the UAE, one of which is a production block and the other is an exploration block. We are looking to enter another producing block and the stake is expected to be acquired by a consortium led by ONGC Videsh.”

ADNOC is also looking to invest in refining and petrochemical projects, as well as storing more crude oil in India to expand its presence in the country.