Abu Dhabi National Oil Co (ADNOC) announced on August 31 the award of five framework agreements valued at $1.83 billion for Directional Drilling and Logging While Drilling in line with the company’s goal to expand production capacity to meet the world’s growing demand for energy.
According to a company press release, these framework agreements are the “largest of such awards in the oil and gas industry,” which were awarded to five service giants including Al Ghaith Oilfield Supplies and Services Co, Al Mansoori Directional Drilling Services, Schlumberger, Halliburton and Weatherford.
The awards, which were handed out following a competitive tender process, cover ADNOC’s onshore and offshore fields and will run for five years with an option for a further two years, ADNOC added. Over 75% of the award value could flow back into the UAE economy under ADNOC’s In-Country Value program over the duration of the agreements.
Yaser Saeed Almazrouei, ADNOC’s upstream executive director, said in an official statement that the company is “responsibly ramping up drilling activities.”
ADNOC working toward gas self-sufficiency
The framework agreement awards will support ADNOC’s goal of drilling thousands of new wells to expand its production capacity to 5 MMbl/d by 2030 to enable gas self-sufficiency for the UAE, ADNOC said.
The company also noted that it is optimizing its procurement approach to reflect market dynamics, focusing on long-term contracts with an optimal number of suppliers that provide stable and reliable delivery at highly competitive rates.
Since November 2021, ADNOC has awarded drilling agreements worth over $11 billion to top-tier contractors for wellheads and related components, downhole completion equipment and related services, liner hangers, cementing services, wireline logging and directional drilling.