ADNOC Drilling scopes mega deals worth over $3.4 billion to unlock UAE’s energy resources

ADNOC Drilling scoops up mega deals worth over $3.4 billion

In a bid to drive production capacity growth, the UAE’s ADNOC Offshore has awarded two contracts totalling more than $3.4 billion (AED 12.6 billion) to ADNOC Drilling to hire eight jack-up rigs and expand offshore drilling activities.

ADNOC Drilling

The UAE’s giant Abu Dhabi National Oil Company (ADNOC) revealed last week that the contracts, valued at $1.5 billion (AED 5.6 billion) and $1.9 billion (AED 7 billion), respectively, would support the expansion of its crude oil production capacity to five million barrels per day (mmbpd) by 2030, enabling gas self-sufficiency for the UAE.

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, remarked: “This world-leading investment will significantly expand our drilling activity to accelerate growth, drive value and responsibly unlock the UAE’s resources in response to globally rising demand for energy.”

Furthermore, ADNOC Drilling’s rig fleet is expected to enable ADNOC and its strategic international partners to further unlock Abu Dhabi’s offshore oil and gas resources over the life of the 15-year contracts, “creating significant value for ADNOC, its partners and the UAE.”

ADNOC explains that over 80 per cent of the value of the awards will flow back into the UAE’s economy under its In-Country Value (ICV) programme, supporting local economic growth and diversification.

“ADNOC Drilling’s state-of-the-art fleet and market-leading capabilities will be a key enabler as ADNOC strengthens its position as a leading low-cost and low-carbon energy producer. We are focused on delivering on our 2030 strategy, in support of the directives of our wise leadership to grow and diversify the UAE’s economy,” added Al Jaber.

Moreover, ADNOC elaborates that the jack-up rigs will be hired along with manpower and equipment to support drilling operations across its offshore fields, which account for about half of the firm’s production capacity.

ADNOC Drilling owns 105 rigs, including 27 offshore jack-up units, enabling it to unlock “significant potential” in Abu Dhabi’s waters, according to the UAE giant.

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When it comes to ADNOC Drilling’s most recent deals, it is worth noting that the offshore drilling contractor secured two more substantial contracts with ADNOC in late July 2022, totalling $2 billion (AED 7.49 billion).

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These deals were awarded for integrated drilling services and the provision of four Island Drilling Units at ADNOC’s Hail and Ghasha gas development project.