Abu Dhabi National Oil Company (ADNOC) has awarded its subsidiary ADNOC Drilling two contracts totaling more than $3.4 billion to hire 8 jack-up offshore rigs.
The contracts, awarded by ADNOC Offshore, will support the expansion of ADNOC’s crude oil production capacity to five million barrels per day (MMbbl/d) by 2030 and enable gas self-sufficiency for the UAE, the state-owned oil company announced on Thursday.
As part of the 15-year contracts, ADNOC Drilling’s rig fleet will enable ADNOC and its international partners to further unlock Abu Dhabi’s offshore oil and gas resources, creating significant value for ADNOC, its partners and the UAE.
According to ADNOC, over 80% of the value of the awards will flow back into the UAE’s economy under ADNOC’s In-Country Value program, supporting local economic growth and diversification.
Strengthen ADNOC’s position as low-carbon producer
“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,” HE Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC’s managing director and Group CEO, said in a statement.
Al Jaber added that ADNOC Drilling’s capabilities will be a “key enabler” for the state-owned oil company to strengthen its position as a low-cost and low-carbon energy producer.
The jack-up rigs will be hired along with manpower and equipment to support drilling operations across ADNOC’s offshore fields, which account for about half of ADNOC’s production capacity. ADNOC Drilling is the largest national drilling company in the Middle East by rig fleet size, with 105 owned rigs, including 27 offshore jack-up units, one of the largest operational jack-up fleets in the world.
ADNOC Drilling recently secured two substantial contracts totaling $2 billion for integrated drilling services and the provision of Island Drilling Units at its Hail and Ghasha Gas Development Project.