ADNOC has awarded a $1.53 billion contract to ADNOC Drilling to support the expansion of its parent company’s offshore operations amid growing need for oil and gas with a lower carbon intensity.
The two-year contract awarded by ADNOC Offshore covers the provision of 12 jack-up rigs, two island rigs and the associated integrated drilling services, the state oil company said on Monday.
The most recent award will leverage ADNOC Drilling’s start-to-finish offering, as well as the company’s scale to drive value and efficiencies while minimising environmental impact, the parent company said.
“ADNOC Offshore will continue to responsibly harness the energy in Abu Dhabi’s waters, as we increase production capacity to meet the world’s growing demand for energy with lower carbon intensity oil and gas,” said Yaser Almazrouei, ADNOC’s upstream executive director.
“ADNOC Drilling is a world leader in drilling and completion services. Their deep expertise and wide technical capability will maximise value and minimise the environmental footprint of every well as ADNOC expands its production capacity.”
The award will support the expansion of ADNOC’s crude oil production capacity and gas self-sufficiency for the UAE.
ADNOC Drilling’s rapid expansion
ADNOC Drilling – a subsidiary of state-owned ADNOC – has continued its rapid rig fleet expansion. Since listing on the Abu Dhabi Securities Exchange in October 2021, ADNOC Drilling has expanded its fleet from 96 to 105 owned rigs as of 31 July 2022.
Earlier this year, ADNOC Drilling was awarded two contracts by ADNOC Offshore worth $3.4 billion to boost production capacity.
In September 2022, ADNOC drilling acquired two premium offshore jack-up rigs for $140 million to meet ADNOC’s plan to raise and sustain production capacity. With the addition of these two premium jack-up rigs, the company said it owns one of the largest operating fleets of offshore jack-up rigs in the world, with 32 rigs, and has plans for further fleet growth.
In addition to fleet expansion, ADNOC Drilling announced that it secured contracts worth $2 billion to enable the delivery of ADNOC’s Ghasha offshore mega gas project. The company also entered a framework agreement with Helmerich & Payne to advance ADNOC Drilling’s land rig operational performance, as well as support its ambitious growth and expansion plans.