ADNOC Drilling has been awarded a $1.63 billion contract by ADNOC Offshore to deliver Integrated Drilling Services over a five-year period, marking a significant expansion of its offshore operations.
The contract encompasses a comprehensive suite of services, including directional drilling, drilling fluids, cementing, wireline logging, and tubular running services. It also entails engineering and technical support for the execution of extended reach and maximum reservoir contact wells offshore. This initiative aligns with ADNOC’s strategic objective to enhance production capacity while maintaining a focus on efficiency and environmental responsibility.
Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, stated, “This five-year award is a strong reflection of ADNOC Drilling’s long-term contracting model, which provides revenue visibility and stability over the contract period.” His remarks underscore the company’s commitment to sustained growth and operational excellence.
Tayba Al Hashemi, CEO of ADNOC Offshore, highlighted the strategic importance of the contract, noting, “This contract gives us access to their cutting-edge capabilities and market-leading end-to-end services, which will maximise efficiency and generate significant value for our shareholders and the UAE.” Her comments emphasize the anticipated benefits of the collaboration in terms of operational efficiency and shareholder value.
This contract builds upon ADNOC Drilling’s previous engagements with ADNOC Offshore, including a $1.53 billion contract awarded in October 2022 for the provision of jack-up and island rigs and associated IDS. The current award signifies a continued partnership aimed at leveraging advanced drilling technologies to meet the growing global demand for reliable, lower carbon intensity oil and gas.
ADNOC Drilling’s role as the largest drilling company in the region by rig fleet size positions it to effectively support ADNOC’s goal of increasing crude oil production capacity to five million barrels per day by 2030. The company’s integrated capabilities and technical expertise are expected to contribute significantly to the efficiency and sustainability of ADNOC’s offshore operations.
Over 80% of the contract value is projected to flow back into the UAE economy through ADNOC’s In-Country Value program, supporting local economic growth and diversification. This aspect of the contract aligns with national objectives to enhance domestic economic participation and development.
The award also reflects ADNOC Drilling’s ongoing efforts to expand its service offerings and technological capabilities. The company’s recent formation of Turnwell Industries, a joint venture with SLB and Patterson-UTI, aims to tap into unconventional energy resources using advanced extraction methods. This venture is part of a broader strategy to diversify and innovate within the energy sector.