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August 5, 2022

ADNOC awards $3.4bn drilling contracts to expand production capacity

The two contracts, which have a period of 15 years, will help in expanding ADNOC’s offshore production capacity.

ADNOC Drilling has received two contracts worth over AED12.6bn ($3.4bn) from UAE state-owned oil company ADNOC to charter eight jack-up rigs for offshore operations.

Awarded by ADNOC’s subsidiary ADNOC Offshore, the two contracts are valued at AED5.6bn ($1.5bn) and AED7bn ($1.9bn), respectively.

The jack-up rigs are planned to be hired together with manpower and equipment and will be deployed at ADNOC’s offshore fields that account for approximately half of the firm’s production capacity.

The contracts form part of ADNOC’s plan to increase its crude oil production capacity to five million barrels per day by the end of this decade.

During the 15-year contracts, ADNOC Drilling’s rig fleet is expected to help in further unlocking the offshore oil and gas resources in Abu Dhabi.

UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO Sultan Ahmed Al Jaber said: “This world-leading investment will significantly expand our drilling activity to accelerate growth, drive value, and responsibly unlock the UAE’s resources in response to globally rising demand for energy.

“ADNOC Drilling’s state-of-the-art fleet and market-leading capabilities will be a key enabler as ADNOC strengthens its position as a leading low-cost and low-carbon energy producer.”

ADNOC recently awarded two substantial contracts, valued at $2bn, to ADNOC Drilling for integrated drilling services and the provision of island drilling units at its Hail and Ghasha gas development project.

ADNOC Drilling owns 105 rigs, including 27 offshore jack-up units.

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