ADNOC pushes digital frontier with $920m contract to Jereh Oil & Gas Engineering

ADNOC has entered into a substantial engineering, procurement, and construction (EPC) agreement with Jereh Oil & Gas Engineering Corporation, valued at AED 3.38 billion ($920 million). This pivotal contract will see the installation of advanced remote sensing and well operation technologies at ADNOC’s onshore Bab, Bu Hasa, and Southeast fields, significantly broadening the scope of ADNOC’s AI-driven well digitalization initiative to include these key assets.

Expansion of AI-Powered Well Digitalization Program

The newly awarded EPC contract is integral to ADNOC’s mission to enhance operational efficiency through well digitalization, incorporating advanced artificial intelligence (AI) and remote sensing technologies to optimize the performance of over 2,000 wells. The strategic implementation of this program aims to facilitate remote monitoring and control of well operations, thereby reducing downtime, improving well productivity, and significantly enhancing safety. This ambitious digitalization initiative is expected to reach completion by 2027, representing a key milestone in ADNOC’s broader strategy to leverage cutting-edge technologies across its energy portfolio.

ADNOC officials emphasized that the contract aligns with their overarching goal of expanding production capacities while adhering to principles of digital transformation and environmental sustainability. They noted that the extension of the well digitalization program will enhance ADNOC’s capability to manage well performance more effectively, thereby contributing to a stable and reliable energy supply for domestic and international stakeholders.

Strategic Partnership with Jereh Oil & Gas Engineering

Jereh Oil & Gas Engineering, a reputable Chinese oilfield services company, has established itself as a key player in executing technologically advanced EPC projects on a global scale. This partnership underscores Jereh’s proficiency in oilfield digitalization and ADNOC’s confidence in their ability to transform operational processes. According to ADNOC, Jereh’s extensive expertise in implementing technology-driven infrastructure upgrades was a decisive factor in their selection for this pivotal project.

A senior executive at Jereh highlighted the company’s robust AI capabilities and their commitment to delivering substantial value to ADNOC through automation of well functions, continuous monitoring, and overall operational efficiency enhancement. The executive further affirmed that Jereh will uphold ADNOC’s stringent environmental and safety standards while ensuring that the project meets its timelines and operational goals.

In-Country Value and Economic Diversification

ADNOC highlighted that more than 80% of the contract’s value would flow back into the UAE’s economy through its In-Country Value (ICV) program. This initiative is designed to stimulate local economic growth, foster job creation, bolster industrial supply chains, and actively involve local suppliers. The collaboration is expected to significantly strengthen the UAE’s industrial base, reinforcing ADNOC’s position as a leader in the oil and gas sector.

A spokesperson from ADNOC remarked that Jereh has committed to sourcing materials and services locally to the greatest extent possible, in line with ADNOC’s ICV strategy. Such commitments will not only enhance ADNOC’s operational capabilities but also contribute to national economic resilience, fostering opportunities for growth in the private sector.

Technology-Driven Efficiency and Safety

The well digitalization project encompasses the deployment of sophisticated control valves, instrumentation, and other critical hardware across the wells and associated pipelines. This infrastructure will enable real-time data transmission through ADNOC’s private 5G network, currently the largest private deployment of its kind in the global energy sector. The availability of real-time data will facilitate the use of advanced AI tools, such as AIQ’s RoboWell solution, to autonomously manage well operations, thereby enhancing overall efficiency and minimizing the need for human intervention.

Industry experts recognize ADNOC’s AI-driven approach as a pivotal development that positions the company at the forefront of global energy production trends. By integrating AI into oilfield management, ADNOC is poised to mitigate operational risks, increase insights into performance metrics, and maintain stringent safety and environmental standards.

Expert Insights on Digital Transformation in Oilfields

Analysts have underscored the significance of ADNOC’s decision to expand its digitalization program as part of its broader innovation agenda. John Smith, an independent energy analyst, observed that the collaboration with Jereh is a key milestone in ADNOC’s journey toward modernizing well operations through the adoption of AI and advanced digital tools. Smith further commented that implementing cutting-edge monitoring and control technologies is essential for sustaining production efficiency, especially given the fluctuations in global oil prices and evolving market conditions.

The well digitalization initiative is already operational at the Mender, Qusahwira, and Northeast Bab (NEB) fields—ADNOC’s first ‘smart field’ established in 2006. The latest expansion aims to extend ADNOC’s digital oversight across all major fields, enabling autonomous management of well production through AI-driven insights.

Boost for ADNOC’s Production and Sustainability Goals

The EPC contract awarded to Jereh is a key component of ADNOC’s broader objective to increase its production capacity to 5 million barrels per day by 2027, while maintaining operational efficiency and reducing its carbon footprint. The integration of AI and automation will play a vital role in meeting these ambitious production goals in an effective and sustainable manner.

ADNOC’s Upstream Executive Director, Abdulmunim Saif Al Kindy, emphasized that the well digitalization program is central to ADNOC’s ambition of becoming the world’s most AI-enabled energy company. Al Kindy reiterated that ADNOC remains dedicated to achieving high in-country value, advancing industrial growth, and implementing industry-leading technologies to achieve strategic energy objectives.

ADNOC’s Net-Zero Ambitions

A core element of ADNOC’s strategic vision is to significantly reduce greenhouse gas emissions and achieve net-zero by 2050. By extending its well digitalization efforts, ADNOC aims to decrease operational carbon intensity through optimized resource management and energy efficiency. This EPC project exemplifies ADNOC’s balanced approach, integrating technological advancements to promote both energy security and environmental responsibility.

As ADNOC continues to integrate AI solutions, including AIQ’s RoboWell system, the company is demonstrating its commitment to leading the energy sector’s digital transformation. These initiatives align seamlessly with ADNOC’s long-term objective of achieving operational excellence and solidifying its role as a responsible and innovative energy leader.