ADNOC Drilling gets $1.5bn contract to support ADNOC to raise oil production

Abu Dhabi National Oil Company (ADNOC) has awarded a $1.53 billion contract to ADNOC Drilling to expand its crude oil production capacity.

Under the two-year contract, ADNOC Drilling will support ADNOC’s offshore operations by providing 12 jack-up rigs and two island rigs and the associated integrated drilling services (IDS).

ADNOC Drilling has delivered integrated drilling services to ADNOC Offshore since 2019, helping the company to increase the efficiency of its offshore operations.

By leveraging ADNOC Drilling’s start-to-finish offering, the contract will support ADNOC’s crude oil production capacity expansion to five million barrels per day (mmbpd) by 2030 and gas self-sufficiency for the UAE.

Yaser Saeed Almazrouei — ADNOC Upstream Executive Director, said: “Through this award, 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.

“ADNOC Drilling is a world leader in drilling and completion services. Their deep expertise and wide technical capability will maximize value and minimize the environmental footprint of every well as ADNOC expands its production capacity.

“The substantial in-country value generated through this contract will support the directives of our wise leadership to grow and diversify the UAE economy.”

The drilling services contract is part of ADNOC Offshore and its strategic international partners’ efforts to maximize value from Abu Dhabi’s offshore oil and gas resources.

It is expected to support local economic growth and diversification, as more than 80% of the award value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) program.