ADNOC Drilling has signed a sale and purchase agreement (SPA) to acquire two additional premium offshore jack-up drilling units. The investment is central to its expansion strategy and forms part of its three-year guidance on capital expenditure, the company said in a statement.
The two new drilling units, being acquired from Well Target Five Limited and Well Target Six Limited, are Gusto MSC design, premium independent leg cantilever rigs, and will enter ADNOC Drilling’s fleet in Q3 2022.
The company noted that the acquisition cements its position as the largest national drilling company in the Middle East by rig fleet size, with further plans for expansion supported by a significant capital expenditure program.
Abdulrahman Abdullah Al Seiari, the CEO of ADNOC Drilling, commented: “We are extremely pleased to have completed the acquisition of these two premium rigs, which will further bolster our position as a regional drilling leader and complement our already high quality offshore jack-up fleet.
“This is another important step in our fast-paced expansion and growth program, ensuring we meet increasing demand as we enable ADNOC’s ambitious oil and gas production capacity growth as well as achieving gas self-sufficiency for the UAE.”
ADNOC Drilling fast-tracks fleet expansion
The company’s fast-tracked fleet expansion program enables ADNOC’s ambitious targets of delivering 5mn bpd production capacity and realising gas self-sufficiency for the UAE, while increasing the potential for greater shareholder returns, the firm said.
Al Seiari added: “In addition to ADNOC Drilling’s commitment to continuously deliver strong shareholder returns. The new drilling units will join the fleet and start operations in the third quarter 2022, enabling considerable revenue for ADNOC Drilling to the benefit of our investors and the United Arab Emirates.”
Since listing on the Abu Dhabi Securities Exchange in October 2021, the company has expanded its fleet from 96 to 104 owned rigs, as of 31 March 2022.
