Photo: ADNOC Drilling

Two new rigs to join ‘one of the largest operating jack-up fleets in the world’

As part of its accelerated production growth strategy and rig fleet expansion programme, the UAE-based ADNOC Drilling has inked a deal to purchase two additional premium jack-up rigs, consolidating its position as the owner of “one of the largest operating offshore jack-up fleets in the world.” The UAE giant also hinted at further acquisitions in the pipeline.

ADNOC Drilling disclosed on Monday that it has signed a sale and purchase agreement (SPA) to acquire two additional premium offshore jack-up drilling rigs. According to the UAE player, this acquisition, underpinning its accelerated fleet expansion and “enterprising growth,” is the fourth one, which has been confirmed in recent months. Earlier this year, sale and purchase agreements were signed on 30 May for two rigs, 10 June for one rig and 24 August for another rig.  

Abdulrahman Abdullah Al Seiari, Chief Executive Officer of ADNOC Drilling, commented: “ADNOC Drilling takes another exciting step in executing our accelerated growth strategy as a key enabler of ADNOC’s production capacity. The acquisition of these new jack-up rigs consolidates our position as the owner of one of the largest operating jack-up fleets in the world and will significantly boost company revenues, cash flow and shareholder returns over the coming years.”

The UAE-based firm explained that the two new rigs have a combined cost of $140 million and will join the company’s fleet to start operations by the end of 2022. Following the listing on the Abu Dhabi Securities Exchange in October 2021, ADNOC Drilling has “rapidly expanded” its fleet from 96 to 105 owned rigs, as of 31 July 2022. With the addition of these two premium jack-up rigs, the UAE giant underscored that it will own “one of the largest operating fleets of offshore jack-up rigs in the world,” with 32 rigs. The firm also underlined that it has plans for further fleet growth.

Furthermore, the company delivered revenue of $1.27 billion in the first half of 2022, a 13 per cent increase year-on-year, with $379 million in net income – a 34 per cent increase.

When it comes to ADNOC Drilling’s most recent deals, it is worth noting that the UAE giant won two contracts totalling more than $3.4 billion in August 2022 for eight jack-up rigs.

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This came only weeks after the UAE’s offshore drilling contractor secured two more substantial contracts in late July 2022, totalling $2 billion.